The Magic Line Everyone’s Watching is 1,277.14

On April 2nd, the S&P 500 closed at its recent peak of 1,419.04. Traders traditionally mark a correction as a 10% decline, so a 10% fall from 1,419.04 comes to 1,277.14. That’s the number everyone’s been watching.

On Friday, we held above it. The intra-day low was 1,277.25. Yesterday, the S&P 500 got as low as 1,266.74 but thanks to a late-day rally, we closed at 1,278.18.

Today looks more encouraging. We’re currently over 1,284. There’s probably some optimism that the “correction line” held. For now.

Posted by on June 5th, 2012 at 10:16 am


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