S&P1140 target makes a lot of sense to me over the next week. I had said 1150 last week but my support trendline is sloping down so the longer we spend fooling around up here, the lower the target becomes. Also there is a nice gap at 1140 begging to be tested. FAZ in the $14's may be possible.
The S&P is too high for the financials to really mount a strong rally here. If financials are going to make a strong push, then the mkt needs to see a substantial correction here first imo. On a smaller scale this recent trading reminds me of the Jan 2010 top. Next we could see a drop similar to the sharp early Feb 2010 correction which will bring out the bears. After that we could see the equivalent of the March/April 2010 rally with all the bears being squeezed one final time. All of this could happen over a week and a half or so - 2 weeks max. No point getting ahead of ourselves but this scenario is making the most sense to me right now.
If it plays out this way there will be only a few of us hardcore bears left at the top. Nearly everyone will be convinced that the mkt is now a new bull mkt...
SC