Gary Tanashian (biwii.com) submits: For rabid bears salivating over the idea that the market has finally given up the ghost, available evidence shows that nothing has been decided yet. Plenty of support exists at around the 1246 area on the S&P with a 38.2% fib retracement, previous resistance and support (yellow line) and a right tine bottom of a pitchfork thrown in for good measure:
The market's upward track into overbought conditions had been unsustainable. But this market is by no means broken. A big down day on big volume did not leave investors in a bullish frame of mind, but isn't that the whole point? Bottom line: the market is not broken despite some terrible op/ex volatility. Both bulls and bears are well advised to exercise caution until further clues come to light.
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