spx jul01 - today, click to enlargeIn the chart above I have highlighted two types of corrections that occurred recently. The idea is to get a feeling of what the market can do. This way I can get rid of any biases that might cloud my vision.
The green ones are corrections about 24 points long. By this measure, the current correction is over. If the GDP numbers provide a positive surprise (or if the market interprets them that way) the spx will not go under 1093.
The blue boxes measure about 41 points. In this case the market has further to drop to about 1080. I think this comes into play if the GDP report is not clearly positive.
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