The markets may be reacting to some of the news out there, pre-market trading yesterday and overnight today have dropped the SP futures back into previous trading range. Albeit on very low volume. This sets up for some great trading opportunities this week. I will be watching 1326 for today's trade, bullish above/bearish below.
But for the IT picture here is what I am looking at, the biggest drop we have had on this run up came on the first test of the 1300 area, it produced a 37.50pt reaction and put in a low in the 1260's area before taking off on a 80 point rally.
I will use the pattern of repetition for this and look for an eventual bottom in the 1303 - 1308 area, which is also a 50% retracement level of this measured move higher. Followed by an equal sized rally which should take us into the 1380 - 1390 area by April.