A pullback may happen and target [1298.90 - 1304.00] zone. However if this zone is respected, I expect that the next rebound will push price up to 1345.xx.

SPX
I would like to repeat the yesterday post: "Ideally, it would be an advance to 1326.50, then a pullback to 1304.00 and a rebound to target 1345.10".
A pullback may happen and target [1298.90 - 1304.00] zone. However if this zone is respected, I expect that the next rebound will push price up to 1345.xx.

 

SPX bullish reading from mix-points
1. RSI14 got into bullish territory by printing 53.51 value and broke out the descending trend line.
2. Stochastics bullish crossover.
3. MACD bullish crossover with the 1ST MACD Histogram bar in green that hints a few green bars can be expected.
4. In the worst scenario of Elliott Wave Theory that the correction began since 4/2/2012 is not over yet, this bounce (from 6/5/12) is marking the end of the first 5-waves correction and it normally is an ABC bounce pattern. The yesterday 1329.05 - high would be A, B would be the low of the pullback (may be made on today or by next Monday), C could be somewhere around 1345.xx.

If bulls can pay a visit to 1326.50, then any pullback will be a buy opportunity for the target 1345.xx next.

Correction: "If...next" must be understood as "If bulls can pay a visit to 1326.50, then any pullback that respects [1298.90 - 1304.00] will be a buy opportunity for the target 1345.xx next."


SPX
Ideally, it would be an advance to 1326.50, then a pullback to 1304.00 and a rebound to target 1345.10
If bulls can pay a visit to 1326.50, then any pullback will be a buy opportunity for the target 1345.xx next.

Can this rebound be compared to the 5 days' rebound of 5/21/12?

SPX daily
The 2 months' correction (Bears) took away 12.28% off the price from the top may need time to breather.
Although Stochastics and MACD are still in oversold condition, the RSI indicator is showing some positive divergent meanwhile the price is trying to get back above the 200days MA.
I would like to recall my saying about T2108 posted 6/04/2012:
"The 2108 indicator is too oversold and that may hint a big bounce is imminent.
T2108 - % Stocks Above 40 Day Pma
The indicator's reading is 18.64. Remember that the indicator was 16.31 on 5/18/2012 before a 5 days' bounce."

Elliott view
It seems that 1266.74 - the low of 6/4/2012 was the end of the 5 waves correction since 4/2/2012. 

The correction was done yet? I am not sure! I need to see price going outside the yellow trend-line and staying above 1300 level to be sure about it.

The 2108 indicator is too oversold and that may hint a big bounce is imminent.

T2108 - % Stocks Above 40 Day Pma
The indicator's reading is 18.64. Remember that the indicator was 16.31 on 5/18/2012 before a 5 days' bounce.

SPX daily
The decline since 4/2/2012 can be counted as a 5 waves correction and it seems that wave 5 is about to finish. If this becomes real we may see a huge bounce at the end of wave 5 around 1260.

For next 2 weeks, Bears may target the 200 days moving average to finish 5-waves Elliott pattern

SPX
With very weak manufacturing data reading from China and Europe Countries including England. Bears will definitely target the 200 days moving average, which is about 1282 - 1284.
Elliott wave count can then be 5-waves pattern if bears can be successful reaching 1282 - 1284.

Trading plan
SPX could sink deeply at open as what Europe markets and US-futures are showing but It may be halted at somewhere between 1296.53 and 1291.98 and a bounce may be found.