Finally! Sheesh we've been working on that 1120 level for ages. As I mentioned each time we came near to testing 1120, the next level of support is 1100 which was the intraday low on Fed decision day, quite a while ago. (mid August)
As I scale the chart back further, in case 1100 falls, the next level of substantial support is down at 1040s area, which takes the index back to late August 2010 lows. If you remember, that is where The Bernank came to the 'rescue' by utilizing $600 Billion to
prop up the stock market....err, prevent deflation... the hint was dropped at Jackson Hole, WY and off we went. That same 1040ish area is also the level we hit in early summer 2010, before the ultimate July low of that year, so I'd expect it to be a quite good support level.
That said, all rallies remain ones to be sold, and flipped - this is not a buy and hold market. Very agile traders can try to play these oversold bounces here and there, but at this point not until 1240ish level would I really be constructive. Or at substantially lower levels, of course.
In the nearer term, we'll see how the S&P acts in between 1100 and 1120. A late day reversal pushing us through and back over 1120 would be a nice win for bulls in the very near term. A close below 1100, obviously would bode ill.