RSI hasn't reached oversold on the daily chart and what has me worried is that I don't see big enough spikes on the VIX yet, thus, it seems there is no fear in the market even at these low levels
As I posted on the June 4 update, it seems more clear now that 1261 is the next support area on SPX and even the 200 SMA seems to be the ultimate support; right now at around 1253. It seems to me that the market needs to reach this level to reach oversold conditions and create fear in investors before the next rally higher can begin.
If you are holding long positions and are not willing to cover yet, be prepare to loose at least 1.3% more. Hopefully, something similar to what happened the week of June 28, 2010 or the week of August 28, 2010, will repeat again this time.
thought we might see it today, but the buying was weak. Agree on the 1250-1260 area. Only problem is everyone is watching the 1250 mark.
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