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By Lawrence G. McMillan

When the dust has settled, this looks like little more than a pullback from a slightly overbought condition to test the breakout level (at 1220). To sum up the $SPX chart: there is still support at 1220, and as long as that holds, it's a bullish chart.      

Equity-only put-call ratios have remained on buy signals all week, despite the heavy selling earlier in the week.      

Also, the breadth oscillators are back on buy signals once again.

Meanwhile $VIX has now fallen back quite a bit, triggering a short-term $VIX spike peak buy signal.

In summary, we remain constructive on the market. As long as $SPX 1220 holds as support, this market should be able to work its way higher. 

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