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Market Continues Moving Higher

sp-bear-mkt-view-2009-09-11

It’s been a few posts since I’ve shown this chart, but its behaving much as we anticipated.

You see that we did in fact bounce off the converging moving average and 50% retracement lines and now are headed up to test the 38.2% retracement.

Historically, most bear market rallies stall out between the 50% and 38.2% levels. The one big thing going for this rally is that there is not a lot of volume-based overhead resistance (see the small horizontal bars along the left side). We will have to see how this one shapes up.

Have a nice weekend!

Mark