No Rebound Rally in Sight
After a drop of nearly 600 Dow points in just four sessions, one would expect a sharp rally, even if only a brief one. So far it has been unable to materialize. Yesterday it had the opportunity, with the Fed inaction removing a distracting factor, but such was not to be. This reflects a bothersome loss of enthusiasm and suggests that the slide has further to go.
In recent weeks, the technical factors we have been watching have been warning of this drop, so it is no great surprise, but the lack of any rally enthusiasm is distressing. I have repeatedly written that 1395 is the likely downside target for the S&P 500, at least for the shorter term. We are getting close but are not yet there. Below that, should it be penetrated, is a longer-term target of 1330....373 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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