Lawrence G. McMillan: Recent action suggests ‘sell on rallies’ time may be here

Everett Collection

The conditions of the market changed markedly last Friday, as the S&P 500 SPX, -0.06% broke down through support. That breakdown dragged the other indicators into bearish conditions as well. There had been support at 2160, but that was shattered early on Friday morning, and the selling piled on all day. We published a study of market tops recently, and one of the things that has been common with tops in the last few years (and many other times in the past, as well) is that when an obvious support area (2160) is shattered, there can be a large intraday decline.

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