The testing of the three-week rally is now on with the Obama Administration pushing the boss of GM to resign. Also some remarks from Tim Geithner about more money for banks added to the spooking of the market.

Despite more bears going to the bull-side, we still have to see if the latest rally can keep the S&P 500 index above the devil’s number of 666 — the most recent low. If this happens, we go sideways and build the bottom that we missed out on in the New Year.

As always, we need leadership to be better than expected and the first test is the G20 meeting in London on Thursday. There will also be a swag of economics data as well, which could help if they come in better than expected.

Right now, the rally has to deal with the fact that this is the end of a month, a quarter and even the year for some companies. This could push the market down as well.

The big hope is, as I have already said, that we can resist breaking the market low and resume the rally. The next few weeks will be interesting and pray for good news to beat bad news.

Peter