My Current viewpoint of the S&P 500

Based on what we have seen so far, I would not be surprised for us to see a massive take down in the markets.  Considering that all this bad news taken place is considered good news.  On top of that, I don’t see the latest news regarding the stress tests results as good news at all.  Plus, demand is not going to pick up significantly anytime soon so capacity will either drop further or remain stagnant at these levels.  So I believe global capacity will stay flat for a while until consumers have really deleveraged.

None the less, I see two outcomes coming along for the market. 

1. A heavy resistance is going to be faced at the 940 line on the S&P 500. Once we touch that, I believe we are going to take a nose dive all the way down to the blue line, 740 level.  But just in case, I will also keep an eye on S&P at the 840 line.  Just in case major support holds there.   Thus the first outcome that I see is an inverse head and shoulder pattern.  Taking us down all the way to around July.  Once we have hit that, I see a rebound again, taking us back all the way down to the 1100 line on the S&P by the end of the year.  Once we form the shoulder, I am going to be loading up on high beta sectors such as consumer non-cyclical, autos, retails etc. 
2. Second outcome is that we are going to hit that point and go sideways or correct on a minor level, causing a pull back.  I can also see a probable 1100 line on the S&P 500. 

But I believe the most funniest thing about this market is that everyone keeps on expecting a pull back, and I keep on hearing more and more bears saying that this market is going to fall.  Even I was one of them, but I guess I was wrong and so I got back into the market.