S&P created a piercing line, usually a reversal signal, although the pattern is approximately 65% accurate going by backtesting the formation. The critical thing for the S&P for me, is the pivot at 869.42 did not hold, so now I see initial resistance between 870 and 880. I have a rising resistance line from the gap high candle at 844.47 created on 14 Oct 02 to the 869.42 pivot created on 31 Dec 02 and rising. So basically if it is going to bounce, you expect no more than a three day bounce in a downtrend and counter trends last between 1 day to 3 days max. So if it bounces for three days 868/870 will be initial resistance and looking to load up on shorts, otherwise, downside targets are @ 815 and 768. fwiw.
