Well, no shocker here. History suggests that big sell offs are ultimately followed by a lower low. We got that today. I know many are looking for 1018 (50% Fib Retrace) but I just don't think we are going to get there. 1080-1090 Pivots seems like reasonable support but 1055-1062 Pivots would make more sense if a capitulation bottom occurs. I can only trade mutual funds so I don't have the luxury of catching a capitulation bottom, so I went 25% double long today (50%) with 75% cash to deploy at lower levels.
Bottom of weekly Bollinger Band is at 1071 which would make sense as a reasonable short term low. Often, the market trades through it on the first move down (as it did in July and August) and then touches it the second time (then rallies). Notice the third link below and you will see that the market in March of 2008 touched the bottom of the BB after first breaking through it. Then it rallied meaningfully higher.
Also, RSI, MFI and MACD are all forming possible bullish divergences, while RSI and MFI are forming possible WEEKLY divergences. That would suggest a bounce that might last for a couple of months rather than a couple of days or weeks.
Daily
http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=7&dy=0&id=p54280484771&a=243753337&listNum=1
Weekly
http://stockcharts.com/h-sc/ui?s=$SPX&p=W&yr=1&mn=0&dy=0&id=p21520836351&a=243023935&listNum=1
2008 Weekly with Bollinger Band
http://stockcharts.com/h-sc/ui?s=$SPX&p=W&st=2007-06-04&en=2008-06-23&id=p06564419474&listNum=1&a=245202441
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