
We may have put in a bottom last week when we tagged the the 38% Fibonacci retracement of the March 2009 lows to the April 2010 recovery highs. That would be a normal retracement in a strong uptrend. Technically, the markets were oversold and we were due for a relief rally. The lack of news and data today, seemed to set the stage for a bounce. But, we need follow through in the coming days, in order to confirm today's action as a key reversal day. As depicted on the SPY chart below, we closed at the bearish gap resistance level. Tomorrow's jobless claims and retail sales data will set the tone.


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