Buying opportunity as usual, last week when the SPX dipped this low I predicted 1340+ it came within 5 days......Every single time we see a dip like this it gets bought, over and over and over again and I dont see it being any different this time, markets will probably get a bit of a relief rally tomorrow and by friday probably erase about 1/2 of today's losses.
If the SPX closes below 1300 and starts to break all support levels then any bounce for now would be over, but as long as they can hold these levels in the SPX everything is still fine.
So here goes, a close below SPX 1300 and that will psychologically trick the longs to start selling because shortly after that 1275-1280 is the next support level, that breaks and 1260 has very strong support, after that the SPX would pretty much go into a free fall if that level is taken out. So it will be interesting to see whats coming up over the next few weeks as QE2 comes to an end which we all know isnt as they get ready for QE3!
If the SPX closes below 1300 and starts to break all support levels then any bounce for now would be over, but as long as they can hold these levels in the SPX everything is still fine.
So here goes, a close below SPX 1300 and that will psychologically trick the longs to start selling because shortly after that 1275-1280 is the next support level, that breaks and 1260 has very strong support, after that the SPX would pretty much go into a free fall if that level is taken out. So it will be interesting to see whats coming up over the next few weeks as QE2 comes to an end which we all know isnt as they get ready for QE3!
