The SPX has pulled back to the Oct high of 1295 that was cleared in January. This is also the Fib 38.2% retracement pt of the Oct to April rally. The RSI 21 has also tagged the very oversold area of 30 and turned back up which is a rare event. Last time this occurred was the Aug/11 low. Positive divergences are also being seen in other oscillators. Price is also stretched over 50 pts below its 20ema. Price is like an elastic band attached to the 20ema and continuously snaps back to it with most markets on a regular basis. Bottom line: 1295 must hold and price rebound from here. Resistance is the breakdown pt at 1340. A breakdown of 1295 that holds would suggest a selloff to next support at the Fib 50% retracement pt and price support at the 1250-1260 area. With the present market technicals a rally to 1340 is far more likely. That would also be a Fib 38.2% retracement of the April high to present low selloff. Perhaps it's "Happy days are here again" time...............for a bounce back if nothing else. Gotta trash those bears now that the bulls have been trashed. The market is not prejudiced and wants "everybody's money" not just 1/2 of them.