The mini-rally; the important events tomorrow

It's been over a month since I last posted. Not sure how many missed reading me but I hope it was atleast a few :)

My prior post seems to have been very clairvoyant. We are now past the snapback rally from S&P 666 to S&P 830, an almost 25% rise in a few weeks! If only I had followed my own post for my personal investing decisions :(

Things happening tomorrow:

• FASB is about to relax mark to market accounting rules. This is very significant for the banks since they can reduce their "reported" losses and improve their capital ratios
• The G20 meeting in which success will be measured by agreement on how to deal with toxic bank assets, new banking regulation and elimination ofd tax havens

Now, as has been oft repeated, it's the reaction to the news that matters. I wonder if the mark to market event is already priced into banking stocks that have rallied 45% since the lows. If not, we will see a surge tomorrow.

As for the G20 summit, the expectations are low and I think there is not going to be much success with the agenda. Reaching a consensus amongst politicians is ridiculously difficult.

So market wise, we stand close to S&P 810 Wednesday evening. If mark to market brings in buyers, I think they could push the market up to 840. However, there are big negative news events to consider as well, the big one being the Friday jobs report. I am looking for a consolidation to S&P 765 where the big decision of the big break will happen. Fasten your seatbelts for some volatile trading to come.