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August 17, 2009 / Jeb

SPY Finding Support on this New Uptrend.

SPY

After the SP 500 Etf made an inverse head and shoulders, I believe that confirmed a major trend reversal.  Right now it is finding support until 97 before it makes its next move to previous resistance at 110.  Use these pullbacks to get into equity positions as gold stocks will follow a strong stock market.  This is a shakeout of the stock owners who rode SPY all the way down.  Also there was a lot of profit taking from the indices being overbought.  Look to add to new positions on weakness and the good seasonal period of stocks is only a few weeks away.  These pullbacks are the natural way the market weeds out the weak hands.

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