Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After a morning rally and then choppy action the S&P 500 has now broken the lows from a week ago Friday. It is now below the ascending channel created since June, so there is definitely a change of pace happening here. Of course the farther this goes straight down the sharper the rubber band effect will be on the ultimate dead cat bounce. But for now it’s a very controlled selloff the past few sessions without much emotion out there. All eyes will be on this mid 1420s level. Another reason it is key is 1422 was the high of April so will old resistance become a form of support?
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