The Next Move Is Likely Down
It looks now as though the S&P 500 has found a new very narrow trading area. The old level of 1388 that had been support on the way down has now become resistance as it tries to rally. But since the uptrend was broken last week, and so was that key support level, this suggests that the next move, after some hesitation, will be down.
After Thursday's rally, the pullback on Friday and then Monday's strength, we're still within that trading range, for now. My concern is that the picture, especially in the Dow Industrials, begins to look like the second shoulder of a head-and-shoulders top. That would project a drop in the Dow of 600 or more additional points....333 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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