The target for this rally is SPX 1119. A close above SPX 1119 would point to a run to the next resistance level, at SPX 1226. SPX 1126 and SPX 1119 (the 50% retracement of the entire bear market) are very close together. The recent weakness may have been the result of this powerful resistance level having been approached.
If we do get to SPX 1119 in coming weeks, it will be difficult to surpass this strong resistance level without a correction first. Profit taking is part of any rally and typically it occurs at resistance levels so we may still have another round of selling ahead.
The good news though is that a close above SPX 1125 (a decisive close) would negate this correction to the bear market.
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