If the S&P 500 fails to hold between 1,191 and 1,209, a crack may appear in the door allowing stocks to revisit the October lows. A case can be made for support near 1,180 as well. If the S&P 500 can remain above 1,180/1,191, another push toward 1,240-1,280 cannot be ruled out. In either case, the odds remain in the bearish camp longer-term. Consequently, conservative/deflationary/bearish assets, such as bonds (TLT), the dollar (UUP), and shorts (PSQ), are attractive looking out several weeks to several months.
Other concerns remain:
If the ECB relents and decides to print money, all bearish bets are off. However, given Germany's stance that appears unlikely in the short-term. Over the next few months ECB money-printing becomes more and more likely.