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Friday, January 29, 2010

Market Rumblings and GDP

Friday at 8:30 am, GDP numbers are announced. It could trigger a market retrace (rally) from the recent lows. The key is to watch is S & P 500 hit above 1150, until it does, I believe the markets are going to continue lower for the next few weeks, before reversing. After 10 months of a strong advance a little reality is needed before the market may resume its uptrend.

This market is considered by some as a new bull market. At no point in history has a bull market produced such a huge rally, S&P 500 up 72% in 10 months. Last time that happened was the Great Depression. As further item to consider is the recent market movements. The market first hit S & P 500 at 1080 4 months ago, and in 7 days the market retraced down. The last time the S&P was at 1080 was about 10 weeks ago.
The point is, at any sign of issues the market is tracing quickly as compared to the advance.
Food for thought.

A chart for your pleasure.

From WebSufinMurfs FinancialBlog2

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