With all the downside yesterday, the put/call ratio is still outside of the oversold area. This makes me think we will see lower lows before a significant rally. Using the Fibonacci retracements I came up with a target of 1167 on the SPX:
It is quite ironic that the twin rallies in 2010 be derailed by the same Euro crisis. For now, my outlook is still based on an end of the year rally to new highs starting somewhere end-November or early-December, but I am well aware that the Euro crisis can be the catalyst for something worse.
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