Wednesday, October 5, 2011
Yesterday was Successful retest of early August low?
The day before yesterday on Monday, SPX closed at 1099, at the low of early August crash (1101), bull-bear market 20% line is just 10 points away at 1090. Yesterday during day trading, that line was crossed, market once reached bear market territory at 1074, then bounced back strongly and closed convincingly above 20% line at 1123. Yesterday's low was the low that SPX futures reached in early August at night-time trading, but was never visited during day-time trading until yesterday, this fact shows that the lack of rally since August drop was due to the lack of a successful retest of August low (not only the day time low, but also the night time low as well)
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