Eureka! We have support?

Well, remember that screaming toddler (the equities market)? Instead of giving them the bag of candy (full point cut) they were given a handful (1/2 point). The problem is, that they ate that handful and it didn’t last and now they want more. It is highly doubtful that another cut would come before the Fed meeting on the 28th of this month. In other words, there isn’t much more that can be done from the Fed’s perspective.

I put up a chart of the S&P 500 ($SPX) to show a severe technical level that should act as good support. If you look at the chart you can see the bear market from the internet bust. You’ll also notice some consolidation (something we haven’t seen yet) and then the breakout. What’s interesting is that the breakout candle’s body is right where the 78.6% retracement of the bull-run from the last 5 years occurs. I see a price level of $941.43, but at this point you’d want to give/take a few dollars, and that is where I would expect support.