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S&P 500 HAPPY DAYS ARE GONE AGAIN

|Includes: SPY, Financial Select Sector SPDR ETF (XLF)

Well, we went below 1100. One thing I forgot to mention last time is that we are still below the 200 SMA on the S&P 500. If we do clear 1100 the 200 SMA will be the next test.

 It was nice to have one happy day at least. For the happy days to come back we need to stay above 1100. As I mentioned in my previous post the S&P 100 did not get above 500 and it acted as resistance. So again, resistance is 1100 on the S&P 500 and it is still around 500 on the S&P 100.

I am going to include a chart on XLF. Recently I was asked what I think of the financials so I thought a picture is worth at least 100 words. You can see it is stuck in a trading range. In my opinion I would wait to see how it resolves itself. Right now it is in the middle of the range so you might as well wait.

Click on chart to enlarge