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Steep support lines have been broken in these key sectors. The support lines deserve some attention since they started back in September, when the number of bulls was the lowest since the March of 2009 lows. Check out the lower half of this post and notice where sentiment was on 8/30. (see post here) The last line in that post stated….”that an upside move would catch many by surprise“
At the time of the post on 8/30, when the patterns suggested to long the 500 index, I received a ton of emails sharing that sentiment didn’t matter and that this market wouldn’t rally but a very small amount. At the time of the post the Dow stood at 10,000, here we are 1,800 points later!
These support breaks NO DOUBT deserve attention, yet in the big picture only minor downside action has taken place, proving very little!