Outlook January 31

The Nasdaq did climb back to 2750, as we indicated last week, then fell steeply on Friday.
We have been warning for an imminent downturn, as indicated on the charts.
This could well be the start of a multi-month slide.
We have come a long way since last August, but we need to remember that markets never go up in straight line.

Here is the current chart for S&P 500 Index (click for larger image);

The S&P touched the 1300 level, then turned down. The uptrend is still intact on this chart, so there is room for some rebound this week. But the upcoming Red Period is likely to take the S&P down in February, and break the uptrend that has been in place since last August.
Any fall below 1270 would confirm this scenario. Then the first target would become 1180.

Stay tuned, Danny