Sun 6/2/2013. Weekend Update.

I made a longer post on Saturday but I thought I'd show a daily chart which partially explains why 1600ish is first key support with the 50dSMA, previous pivots, the uptrend line from 1343 and a triangle breakdown target all in that area.

Given 1600ish support and the 4 scenarios I laid out, I really like Scenario #2 if the 1590s hold at least initially. Regardless if SPX bounces 1% Mon/Tues, that scenario would allow for a piercing of 1600 at some point in the next 5-10 trading days (likely a few hours or days after the Friday June 7th jobs report) followed by a weak bounce/consolidation into the Fed/OPEX days June 19-21 and then another downleg into the 1st week of July. Next support is at 1530-1560 and then 1500ish with lots of price-volume support (not depicted) around the 1550s. Plus, the target for the projected 8-10% drop is 1518-1552. If that area holds, SPX will likely make or at least test new highs (70%+ retracement). One step at a time. The System is flat and slightly bullish but would likely get bearish on the bounce from 1600ish in the scenario just laid out. Good fortune.