We may bounce at this support, but fact is we broke the 2009 trend line as well as the 200 Day Moving Average and have come to rest at the 255 DMA, just a few handles above the March 17th low of 1241.25.
Question is will a bounce really matter. Breaking these important levels has done it's damage, and it seems unlikely that the 2007 trend line (currently at 1358) will be broken if there is a rally off this level.
The last 8 days are responsible for negating 78% of the gains made since the beginning of the year. We are currently below the Dec 31, 2010 close and the Jan 3, 2011 close.
Currently on a major trend line from 2009
It better bounce right here!