We got some serious downside action last week, with the Nasdaq touching the important support level at 2600.
We have another week of lunar Red period to go, so this correction may not be over.
The markets remain very connected to day to day political news, mostly related to the European debt crisis, so this is not the easiest of markets to navigate.
Let’s have a look at the S&P index again (click for larger image):
I think we will get at least one more downswing before we try the upside again.
Important support level is in the 1175-1200 area, if that doesn’t hold then things could become nasty again.
With a new lunar Green Period coming up, I would use weak days to do some buying by the end of the week or early next week.