Market Vulnerable?

For the first time in a few months, the markets are showing signs of vulnerability.  Over the last few days, market volatility has picked up with larger than usual moves in both directions.  This indicates a struggle between the bulls and the bears.  Key levels we are watching are the S&P highs of April 2, 2012 (1,419) and the lows of Monday April 10, 2012 (1,358).  A break to the upside would lend credence to a resumption of the bull market trend, while a break below would indicate a more significant correction is at hand.  That correction could stretch 3-7% from the levels of yesterday's close.  Earnings will drive this market over the next 2-3 weeks and surprises either way will push the market one way or another.  The return of European market weakness is a harbinger of potential troubles ahead.  There will be lots to look at and evaluate over the coming days.