The risks to the S&P are to the downside while it remains below 2040/50, according to Tony Sycamore, Director Institutional Foreign Exchange at Commonwealth Bank of Australia.
Sycamore thinks that the rally over the past few weeks has a very corrective appearance and that we are in the midst of a Wave IV pullback. A trade below 1960 would be an initial sign that a deeper decline has started. Downside targets are a retest of 1830 and possibly as low as 1730.
2040/50 is the level at which he would reassess his view.