By Lawrence G. McMillan
Stocks sold off almost all day Wednesday. This did a lot of additional technical damage. Specifically, $SPX closed below the 1625-1635 support area and now that means the 1600 level is the next support. 1600 was a double top back in April, and when $SPX broke upward through there in early May, it set off the wild buying spree that carried the market straight upu to 1690. Thus it is quite important. If it fails, it is likely that a much more severe decline will emerge – at least of an intermediate-term nature...
This commentary was taken from this morning's pre-market edition of The Daily Strategist newsletter.
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