After 4 up days ending in a gain of 5.15%, I was not surprised to see a pull back in the SP500 on Tuesday. But I was astounded by the magnitude, and then the follow-through. At Friday's lo, 3837.08, the index was almost 14 points [0.36%] under 3850.76.
This is the .786 retracement level from the 8/16 hi, the last reasonable level to support the current increasingly wobbly bull case. It's also in the midst of a support/resistence range between 3700 and 3900, dating back to June.
The only slightly bright glimmer I can find is that after hitting the day's lo shortly after noon, the Index rose 36.25 points [0.94%] into the close at 3873.33. Most of this rise happened after 2:30 p.m.
If the index continues falling next week, then the 6/17 lo is at risk. Then, if that is breached, The Index could reach as lo as 3200.
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