Maintain my call for a mid-term correction with a possible duration 4-8 weeks and a probable target 1312.xx. This call subjected to nullification if bulls win 1422.38.
EURUSD sold off Monday and couldn't make a noticeable bounce today, so the Diamond Bottom I suggested failed. That would negatively affect US markets.
SPX: The bear flag model came to maturity Monday and the sharp price fall was a confirmation. Talking the Elliott wave, the pullback from the high of Friday (4/20/2012) and fueled by a sharp fall Mondays looks as a beginning of the Wave 3 of the Correction Wave C (of the correction ABC).
Trading: A bounce would be limited by [1372.30 -1374.30] and I consider it as a good chance to sell.
A further drop is expected and might find a short term support at [1350.00 - 1354.00].