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Support holds (for now)

The S&P held at support for now.  The SPY bounced off its 50 day EMA but is now test two different short-term trendlines.

Should it break through resistance, the 78% retracement of its 2008 drop will be tested once again.  As highlighted in the chart below, Fibonacci retracement numbers have been regular support/resistance through this rally, as highlighted by the highlights in the chart below.  Purely random?  That’s a lot of random dots.

It seems only reasonable to remain cautious until these long term rising wedges that appear in so many risk assets are resolved.

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