SPX cut through 1290 zone effortlessly like a hot knife through butter on very high breadth. The next possible support we are looking at is the 1248 zone which is 50% fib retracement of oct'11 low to Mar'12 high. The breadth numbers I follow has a lot more room to the downside. So expect this choppy action to continue which should ultimately resolve in a panic situation for the market to put in a tradable bottom. However, given the kind of selling we saw on friday, the next logical move for the market is probably a dead cat bounce. some of the charts on my watch list which were looking good until friday are now looking the exact opposite inviting to short. Any bounce in this market should be sold until proven otherwise.
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