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Tuesday, May 4, 2010

SPX selloff



The market dropped hard 2.5% today breaking the last two weeks support at 1185 which could mean that the trend is changing.
Resistance now is at 1185 and support around 1150
The previous weeks pullbacks have been quickly met by buyers, bringing the index back up within a range, let's see if that is the case now.
The most likely scenario would be a bounce to the 20 ema on the daily chart at 1185 and if resistance is strong, short the break below it.

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