Tue 17 Feb 2009
The S&P 500 is currently hovering below the 800 level. With a close below 800 I think we will go re-test the November lows and possibly break them. Once broken, I’m not sure where we would find support. The market is losing confidence in Obama, and rightfully so. All the levels buyers have supported over the last few months have been violated.
I expect a big fight into the close as the bulls and bears battle to control that 800 level.
Another key level I’m watching is the $8 level on the XLF. If financials hold their lows, then we may hold the lows on all the major indices.
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