The S&P 500 is technically damaged near term. Although a rally is nearing, it will likely be a “backtest” of the broken trend line unless something more serious develops to the upside to repair the damage.
Next likely target lower is 1307-1320 support zone that may elicit rally. Notice the dropping MACD line, which likely portends lower prices. For now, bulls will try to hold 50 day MA.
S&P 500 stock market chart with technical analysis overlay as of July 24, 2012. Price support and resistance levels and stock market analysis. S&P 500 breakdown with lower price targets.
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