Monday, March 14, 2011
Flash --S&P 500 hits support and bounces off but is it a dead cat bounce?
As you can see from the chart above we hit significant support of 1286 on the S&P 500 today and bounced off of that target. We closed the day at 1296-- the question is if we go back and test 1286 again will it hold? If it doesn't hold then 1272 is the next support and then movement to 1250 is possible.
The market has come a long way without a significant correction of 10% or more. As indicated in previous blogs I though the market was looking tired. It was looking tired before we had the problems in Japan.