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Today the market broke sharply late in the day and made a new low for regular hours trading. I think it is worthy of notice that the daily count of the advancing issues stayed well above the low point it established last week. This is a very minor bullish divergence but given today's very wide range and close near the low of the range I am willing to give it added importance.
In any event I think that the swing down from today's high will end early tomorrow not far from today's low. My best guess is that the 1450 level in the S&P and the 144.20 level in the Spiders will prove to be support, while the corresponding level in the Q's is 47.30. All three markets should then rally substantially, the S&P's to 1500, the Spiders to 149.50, and the Q's to 48.50.
After this rally I think that the market will take another tumble, this time to 1435 in the S&P's, 143.00 in the Spiders, and 46.50 in the Q's. At those levels a very important low is likely to develop and I expect the market to rally from there to new bull market highs.