Major support sits around the 1700 level (confluence of the 50 MA and the 40% Fibonacci retracement level -- taken from the October 2011 lows).
Price on the following Monthly ratio chart of the SPX:VIX rallied at the end of today (Friday) to close just above the 100 level -- which is a major bull/bear line-in-the-sand level -- and, about which, I've written in numerous posts here.
The Momentum indicator is still well below the zero level, also hinting of further weakness ahead for the SPX.
Price on the following Daily chart of the World Market Index did eventually drop to re-test the 1600 level, which was mentioned as a possibility in my above-referenced posts. It, subsequently, bounced and has now fallen back and closed below what was near-term major price support (now major resistance) at 1700 and the 200 MA.
Unless we see price rally and the RSI climb back (and stay) above the 50 level, we could very well see this Index plunge back to 1600, or lower. As of now, all three indicators on this chart contain "SELL" signals...and, in fact, the RSI has now broken its recent uptrend, which, also, suggests further weakness to follow.
Unless we see major buying step in soon for the SPX and the World Market Index, equity markets may very well be in for a lump of coal for Xmas -- and, my 2015 Market Forecast may prove to be fairly accurate -- as of today, there are only six weeks until then.
These three charts should provide clues as to any strengthening or continued weakness in the coming days/weeks.
