Monday, January 30, 2012

S&P500 should tank 3% in coming days


We are extremely overbought. I'm looking for a minimum of 3% pull back from recent high. S&P500 has formed a new up trend channel in recent months see the chart in blue. The lower side this channel should act as a strong support level. I'm looking for a bounce from 1270-1260. On the other hand we could see a pull back to 1295 before we get the next leg up. But I rather see a meaning full pull back before I become bullish again.