At this point, a lot of people are forming theories and opinions about the market. The bulls are theorizing that the economy is going to continue expanding and earnings will continue growing for a prosperous stock market. The bears are theorizing that we are entering into a debt-driven recession – some even theorize on a return to the gold standard.
So long as the SPX stays above 2540, I’d probably look at a near-term pullback as a buying opportunity. There is potential danger that we are in the early stage of a bear market – so we must be prepared to act in either direction if key support is broken (bearish) or (bullish) if the market moves firmly ahead of 2580+.
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