Well, a tricky week is ahead since we are heading for window dressing, therefore we can expect good support in the 1300 SPX area for now, which was anyway the target area for this down move, but an extension to 1270 cannot be ruled out - more likely next week.
Have in mind this week has some unexpected events in store - due to the Uranus ( goes stationary) effect
The Dow has broken out of a trend chanel but runs into good support in the 11550/600 area. As you can see with the indicators we need to make slightly lower lows to confirm a bullish divergence - together with plenty other indicators we should have a bottom within 1-3 weeks and a strong short squeeze rally should follow in the July-November time frame. Oil is about to top out in the same time frame. Within this week and next week, expect a volatile bottom building process with the days around Thursday-Friday being updays closing the quarter with window dressing. BKX 60 level should also hold for now - XBD is poised to go lower, a good indicator is LEH which should find bottom in the 20/2 area we are at a 12 weekly combo count in LEH. We need to close this week lower to activate a low. We have a close eye on that and on oil which needs to go briefly over 140 to get the top..