Watch Key S&P 500 Support

08/24/2010 9:46 am EST


Thomas Aspray

, Professional Trader & Analyst

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Weak overseas action and Monday’s lower close suggest the S&P 500 is ready to break below the prior swing support at 1056. If broken, next support is in the 1040 area and then at the major 38.2% support in the 1010 area. The NYSE A/D line is still acting much stronger than the market averages as it is still well above the support formed in June and July. Historically, the A/D line leads the market averages, so this divergence requires close watching.

Tom Aspray, professional trader and analyst, serves as video content editor for The views expressed here are his own.

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