Seems further discounted prices for bulls might be found in next few days. It's just my vague guess!
Nasdaq is way too bullish by making it's all time high, DJ-30 has closed 10 consecutive days above its major resistance/bearish trend line (Oct 2007 - May 2011).
SPX has just closed its first day above the major resitance/bearish trend line, however by combining all market's activities, I belive that a medium term bullish has been established. The best trade is to follow the trend. The smart bullishers will consider to lighten long positions to have a better welcoming a pullback.
My first thought is to expect a sustainable bullish trend extended untill May 2012 before any important correction.
But what about a pullback that normally happens after the market's showing its overbought state?
I think it all depends on the evolutions of Greece's debt rescue.
We may see a normal, not very deep pullback, after a positive debt deal outcome expected in few working days coming.
In case Greece policy makers could not get through with Euro zone officials for the second financing package? I am sure this will lead to a sharp pullback that may threat the support line (~1,280) of the wave 5.
Day traders may pay attention to SPX - 1,356.48 (July 7, 2011 high) as a resistance and 1,333.00 as a support next Monday.