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S&P 500 Sell-Off Imminent

Written By Brian Hicks

Posted January 16, 2012

Don’t get used to the calm markets.

Market volatility is likely to spike again this year on excessive borrowing, demands for a higher debt ceiling, and abnormal shifts in economic growth, as a a breakup of the euro region isn’t out of the question.

You see, while the press is focused on the downgrades in France and other euro-zone countries, Greece bond negotiations are breaking down again, nearing absolute collapse.

That alone would send volatility through the roof, as markets clearly run out of patience.

While the S&P 500 has rallied quite nicely so far, it’s right back at overhead resistance. And it might be time to become a bit cautious on long positions. We’re stalling out around the 1290 line, which was support in mid-July 2011 before the market lost its mind and belly-flopped below 1,100.