The S&P 500 has stalled at the 50% Fibonnacci retracement level as measured from the all time high:
My target going back to the spring has been the 61.8% retracement level. That level also corresponds nicely with the previous support at 1200-1250 and therefore is a logical target or at least it is to me. The current trading range market makes it basically a 50/50 bet as to whether that target is met. Narrow trading ranges such as we’ve experienced over the last 5 weeks are generally resolved with violent moves in one direction or the other.
If we break 1080 on the downside, I would expect a quick fall to the November lows and potentially as far as 975. If we break 1120 on the upside, I expect my 1250/61.8% Fib retracement to be met rather quickly, likely in the first quarter. For now, this is just a waiting game.