Fear Levels and the VIX ...
The VIX (Volatility Index) spiked up when the Libyan revolt started to unfold.
Today, there is talk of a possible Libyan massacre today which would be a real negative should that occur because it could end up meaning U.S. intervention.
The other possible negative event that needs to be watched is the Saudi "Day of Rage" that some are trying to initiate for March 11th. If this happens or develops the appearance that it will happen, then the markets are likely to react very badly.
For Today: So, the market needs to know that these possible dangers have subsided for the VIX to go back down to below 20. Below 20 would reflect a lessening concern about Libya and Saudi Arabia, but 17 and below will be what is needed for the market to regain the confidence it lost this week.