1,640 was last weeks low that the S&P500 bounced off of after the FOMC minutes making it a key support level. Obviously we broke below that on Tuesday and have since struggled to reclaim that level. Keep your focus here. I expect a slow day tomorrow, barring any Syria induced headlines given that its the day before a 3 day weekend. In looking out to next week though if we close below 1,640 on the week then I’m immediate term bearish. If SPX regains that level I’m immediate term bullish with a 1,646-1,656 for Tuesday. A move above 1,656 is required to set up further upside (1,670 test) and potential confirmation of a bottom at 1,627 (this weeks low so far).
I’ll have a more in depth outlook on the market before trading resumes on Tuesday.
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