On Jan 01st analyzing the long horizon SPX chart I wrote that if we were supposed to experience a meaningful retracement (~100 points), it would likely start from the 1850-1900 area. That conclusion was based on the price pattern during the ongoing bull market and the assumption that this price behavior would continue.
sector BPI model despite the SPX strong uptrend. The market sent contradicting signals there. Finally, on Jan 24th the SPX broke down out of the range hard and on high volume. Whether it is the start of the expected correction remains to be seen. The horizontal count from the January top projects the 1752 target on the short horizon 8x2 P&F chart. Note, however, that the index is still within the limits of the rising trend channel and the lower boundary of the channel coincides with the horizontal support at 1768. Watch if the 1750-1770 area provides support and keep the uptrend intact.
Disclosure: On Jan 23rd I opened the SPY Feb Reverse Iron Condor Spread 177-181-185-189 (neutral on direction, bullish on volatility). On Friday I bought back the far OTM calls on the market close.