Spx rally squeezes out the last bears?

The support levels held, again. Despite being short term bullish, we see the last months action as a topping out process, where investors redistribute money. We have greed and fear at it’s best. Although we think market could bounce some more, we want to clarify, our long term view is the market is going much lower. It is of great importance to see if this move up will create the right shoulder, that eventually looses steam, and breaks below the trend and neckline, or if a QE3 will spark another leg up, just like last year. Watch 1300/1310 as key levels on the upside. Base case scenario below;