Last Thursday a post reflected that Bull market leaders, Mid-Caps (MDY) and the Russell 2000 happened to be on the edge of support (see post here). Below is an short and long-term snap shot of the 500 index reflecting support remains in place in this broad index too…
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As you can see the 500 index from a short and longer-term viewpoint remains above key support. As noted last week in the Mid-cap/Russell posting, support is support until broken. Patterns in late July called for the decline that has taken place and the Power of the Pattern also suggested that support would hold as far back as August the 9th… (See post here).
If you look back on the 8/9 posting, this mornings post is suggesting the exact same thing…a support zone is at hand, with the VIX being at a lofty level! Remain of the belief since the neckline broke in early August, that rallies are counter trend at this time!
Game plan…a break of this support and aggressive investors will want to load up to score on defense!!!