To anyone who hasn’t had a chance to look recently the S&P has rolled over. It appears to have made a double top and broken thru support in early May. After that it dropped down to the 200 day moving average and then bounced off and retraced back up to the 50 day moving average. This rebound stalled at the old support level of 1360 which was also the 61% Fibbonacci retracement level.
Now it appears headed back down to the retest the 200 day moving average. Given what is going on in Europe and everyone reducing their GDP numbers for the US if we break down below the 200 day moving average we will be headed toward the recent low of 1280. If we break thru that we can be headed straight for 1200 on the S&P which is approximately 10% down from here.
1280 is the support level you need to watch for.
