The S&P 500 is approaching a critical technical level. There is support for stocks around 1,255 on the S&P 500. The 1,255 level is also the 200-day moving average and the neckline of what appears to be the formation of a head-and-shoulders top. A decided break below 1,255 could signal further losses. If stocks catch a bid at 1,255 on the S&P, technical analysts will tell you that a rally back toward 1,340 is the most likely outcome. Stay tuned.