In his most recent Gartman Letter, Dennis Gartman discussed the most recent economic data out of the United States and warned of the possibility that a further breakdown in the S&P 500 could lead to an eventual drop to the 1200 level. He also pointed out a recent bullish technical breakout by gold.

S&P Looking For Support

According to Gartman, the S&P 500 needs to quickly find support or there could be major room to the downside. However, as of this moment, there is still hope that the pullback is similar to other pullbacks within this bull market.

“We really, really, really want to believe that the break the markets are suffering through now will be like the breaks in the summer of ’10 and the autumn of ’11 and will find support soon,” he writes. He included the following annotated chart, which includes a red box target danger zone should the S&P not find support soon.

Gold Break-Out

The other chart that Gartman included in his most recent letter is…

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