Carter Worth on Friday’s CNBC Option Station suggests the S&P could have a correction to 1820 – some 90 S&P points or down about 10% from current levels.  That percentage seems dramatic but it is not unusual for any given year in the markets. That projected move would take the market down to the 2014 October lows.

So, let’s see what our analysis says. Copper is in a long trade. Gold and Silver are in a short trade. Crude Oil and Nat Gas are each in a long trade. The Dollar (DX) and the 30yr T-Bonds are pulling back from highs.

S&P_

Monthly – Trade pressures are up. The next target up is 2191. Volume is bearish. Need a close below 1889 to start a monthly short cycle.

Weekly – Trade pressures are up. Volume is bullish. The next target up is 2112. Need a close below 2039 to start a new weekly short and, if triggered, that would project a 1814 downside target.

Daily – Trade pressures are up. Volume is bullish. Price has broken up and out of the old 2014 highs. The next target up is 2144.

2080 is the stop and the signal for a possible Daily short. If that short entry materializes, the full move down would take the market to the 1990 level.

So, Mr. Worth is projecting the possible.