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S&P Testing Support Level...


HOW STRONG IS THIS LEVEL?...

Just six days after last testing the 2,050 support level, the S&P is back to try to crack it again.  Here's a look at the SPY whose corresponding level is roughly 205...


Over the past six months this level has been a rock solid floor for the broad market.  However, the subsequent bounces have been getting progressively weaker. 

I fully expect a technical market correction (as I've written numerous times in this blog) but I'm not 100% certain that the market will breakdown on this test of the support level.  The 50 day moving average is definitely moving lower and it has made all of the requisite 'death crosses' for a bear market but the S&P has a bit of variance to this average.  Whenever there's variance to moving averages there is always a probability of a pullback.

More and more factors are pointing to a broad market selloff and my trade proposals on this blog have been designed to take advantage of that... but don't be surprised if today's selloff doesn't kick off the rout.

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