Today was the upteempth day of a flat or gap up open, that was faded in the past few weeks. That person who buys futures overnight sure has deep pockets because he can absorb a lot of losses. While the losses remain orderly they are certainly adding up…. the S&P 500 has now fallen to the 50 WEEK moving average. As you can see this was not an absolute level of support during the spring correction but an area from which the market ultimately bottomed. That need not happen this time around but it will be interesting to see what sort of defense the bulls put on here. This moving average also was the springboard for the early 2012 rally as a break of it to the upside in late December was a key development.
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