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Wednesday, March 16, 2011

$SPX Bounce Off Support

After a sharp gap down on Tuesday, the market found at least initial support at the 50% retracement of the entire November - February rally effort, which also happens to be a 50% channel line. While the ensuing bounce shortly after the open was a respectable start by the bulls, at this point it is merely a technical bounce out of oversold conditions, within a greater corrective phase. Now we watch to see if there will be any meaningful follow-through over the next few sessions, which is needed before any talk of a new leg higher can be seriously considered.

Trade well.

-- Brinkley
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