Nary May Ye Fall.

After a recent precipitous fall, much technical damage has been done. 1120 remains the last chance for sufficient support to avoid a further descent to very nearly 1000 (the July 2010 low of 1022).

The just-completed breakout from this tightly wound pennant formation would suggest further declines. The index hangs by a thread in this 1120-1130 area. And we haven't yet mentioned 8 months of overhead supply that hangs ominously above at 1260. It would take a Herculean effort to bust through that to sustain the rally they all dream about.