SPX Reaching First Support Here...

I had earlier called for a "mild" retracement which is happening right now -- helped by some so-so or simply atrocious earnings during this past week, and probably also because of option expiration today. I do think however, we are reaching the intermediate level of support in the SPX at 1,271-1,267, which should provide the first opportunity for the bulls to defend their 2006 yearly gains. Below that, I am afraid there is nothing of significance until the low 1,240s... So, I reckon it would be important to see what kind of reaction we get out at these levels. As I am writing this, the SPX is trading just below 1,270, but I am still going to stick with my bullish call for the end of March, but I might need to revise it, should the market render significant technical damage here. For now, buy the dips below 1,270 with a stop loss at 1,264...