US Trading: After having met our bounce target at 1230 the SPX set another lower reaction high in last week’strading, underpinning the bearish price structure. With the Friday sell-off event, the SPX is testing the trendsupport of a classic bear flag at 1150. On a very short-term basis the market is oversold and could bounce earlythis week but at the end of the day we expect a break of 1150, which would call for a re-test of the early Augustlow at 1102. We are sticking to our recent tactical calls and see a high likelihood of breaking 1102; if so the risk is to move down towards 1050/1032. In case of overshooting, we could finally see 1020 in the current bear run.
PS. They are, By the way, Thomson Excel took.
ЗЫ2. I do not like it when I have similar views with them, nevertheless;)