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Positive A/D numbers have improved the A/D line as it is now testing its downtrend. A strong move through this resistance would be a very positive sign for the stock market (see February). The market is fixated on the jobs report, so stocks are likely to open sharply higher or lower, but it is the close that will be important. The S&P’s 38.2% retracement resistance is at 1109 with the 50% resistance and the 200-day MA in the 1130 area. Initial support for the S&P is at 1065-1070, which, if violated, will trigger heavier selling.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
