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S&P 500 Technical Update


A sustained move above 1370 would neutralize the situation.

This past weekend led to additional volatility in the financial markets, as expected. On Friday, I wrote about last week's technical breakdown and poor closing print on the S&P 500 (SPY) (see S&P 500 Technical Update: What Happened?). This breakdown set the tone for Sunday night's futures session, as European election results were uninspiring and the talk around town.

In fact, the atmosphere became so bearish that the futures flushed down into the 1340s. This "flush" eventually led to a strong rally in the futures that has carried over to the cash index today.

Near term, it appears that the bears got a bit too eager, too soon. But the markets are still volatile and the bears are still clinging to control. A sustained move above 1370 would neutralize the situation. Watch today's action and closing print.

Remember to block out the noise and let the levels do the talking. Define your risk.

Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.

Twitter: @andrewnyquist
No positions in stocks mentioned.

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