re: Whats the next event that could send the markets back down to the 3500 level or lower??

For sure too much to fast, but 10yr went from what? 4+% to 3.4% in one month since CPI for October. Dec 13 November CPI; if it were to say, surprise to the downside, 3% doesn't seem that far. If it shows a slower than expected decline, you are definitely right. The markets are in the process of blowing it's load realizing 9% inflation is over; the markets haven't yet realized that getting from 4-5% to 2% will require unemployment to go up unless we magically bring back productivity and that is not happening. I'm playing for a light CPI and I'm going to unload alot of these calls if that happens.