S&P Future Down Over 2% Pre-Open, Watch Peter Lee's Targets (1,120-1,150)

courtesy optionsxpress
Equity index futures are down more than 2% pre-open after S&P downgraded the U.S.'s credit rating to AA+ last Friday after the close. The sovereign debt crisis in Europe is also on the minds of traders (ECB news). Gold broke above 1,700 in USD and the E-Mini S&P 500 Future is currently down 2.48% at 1,168 (around 7am est).

Peter Lee, Chief Technical Analyst at UBS, warned everyone on Breakout last week that a break below 1,250 support on the S&P would hit stops and send the S&P down to 1,120-1,150. The E-mini future hit a low of 1,161 five days later. Amazing call. This chart definitely looks like a bounce is ahead, but it could hit those shoulders from 2010 at some point, which happens to be around Peter Lee's targets. In other technical news, judgment day is near for EUR/USD in the symmetrical triangle. I'm waiting to see if the Dollar or Euro breaks down.