UBS's Peter Lee: S&P Below 1,250 Triggers Stops, Cyclical Bull Rally Peaks At 1450

Peter Lee, Chief Technical Analyst at UBS, was featured on Breakout yesterday with Jeff Macke and mentioned important technical levels to watch on the S&P 500 Index. He said if the S&P breaks below 1,250 support, stop loss executions will cause a "fast drop" to 1,120 or 1,150 (decent move, 8-10%). But even if that's the case, Lee sees one more rally in the S&P that peaks out between 1,440 and 1,450, which unfortunately concludes the cyclical bull market. I embedded the video after the jump, or watch it at Yahoo Finance.

The S&P closed at 1,254 yesterday and the S&P future is currently up 0.6% overnight. I threw some lines on a chart showing the levels to watch. If the S&P does fall to 1,120, will QE3 spark the rally to 1450?

More bulls:

• Thomas Lee, Chief U.S. Equity Strategist at JP Morgan, "predicts a potential move of the S&P 500 toward 1400, an increase that he thinks will be fueled by industrials, basic materials, energy and tech." - July 25, 2011 (CNBC)

• Deutsche Bank sees 15% upside potential for the the S&P 500 with a year end target of 1,550 - July 26, 2011 (Business Insider)