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Friday, July 30th, 2010

This is a Portion of the FREE Weekly Commentary is a part of a comprehensive weekly posting for subscribers of The Option Strategist newsletter. Click here to receive the full commentary free via email. Click here for Testimonials.

Stock Market 

The strong July rally has run into stiff resistance. It is now important to distinguish between a possible short-term overbought correction and an intermediate-term sell signal.

$SPX is the key indicator at this time. It hasn't been able to get through resistance at 1120, and is now undergoing an overbought correction. However, if it falls below 1087, that would probably indicate that this most recent breakout was false, too.


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