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In previous posts we warned traders that SPX was vulnerable to a move lower towards 4350. Price reached as low as 4369. Price reached the horizontal support from the previous high made in March.
SPX is bouncing higher from the horizontal support and our pull back target. SPX has the potential to continue higher above 4640 towards 4900. As long as price is above 4350 we are optimistic that SPX can move higher. Failure to hold above the green support line will be a bearish signal and price could move even lower below 4150.
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