Today was the first sign of vulnerability to the rally, however the market bounced off support nicely and traded back to the 50% retracement level of todays fall by the close.
The first few days of the week the market has continued its breakout, showing the power of a move out of consolidation combined with a reversal in the MACD. All major sectors confirmed this breakout with financials and tech leading the way.
Looking ahead to next week the biggest thing I am watching is how the SPY handles 229.50. This is the all time high and if it stalls here it could represent a double top. However, a breakout through this level could see bigger gains.
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