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Lawrence G. McMillan

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Oct. 31, 2020, 8:27 a.m. EDT

The bears have ripped control away from the bulls — and if the S&P 500 falls below this level, it could get ugly

Watch 3200

By Lawrence G. McMillan, MarketWatch


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The stock market has plunged in the last few days, virtually wiping out the entire rally that began in late September. The market is quickly becoming oversold, but “oversold does not mean buy.“

Several support areas for the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.16% have been broken, and the only remaining one has now become very important for the bulls. That is at 3200, the bottom of the September decline and also an area that provided support several times in late July. If that gives way, the next support areas are 3150 and 2990 (and perhaps the 200-day moving average which is at 3140 and rising).

/zigman2/quotes/210599714/realtime
US : S&P US
3,629.65
-5.76 -0.16%
Volume: 2.32B
Nov. 25, 2020 5:33p
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