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Joe,
You're correct here - I didn't really address the issue you were raising. I
was noting the OTHER significant area of support that I see on the chart. In
my timeframes, I don't even think of the SPX as a trending market, but one
that is more likely to snap back from extremes.
I'm not sure what the daytrading books tell you and I don't really have an
opinion on market direction at the moment ... but a close BELOW both daily
support that you mention, AND the 200-day XMA, would be quite significant
and likely result in follow-through tomorrow ... whereas these particular
areas of support holding would induce me to look for a base forming.
If this base does hold, it would incidentally be the exact same area (~1277)
where the "market players say they are on the sidelines waiting for the Fed
Reserve meeting"-type-stuff occurred a few weeks before the last Fed
meeting.
Cheers.
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