The S&P500 closed below 1040 yesterday. So why is 1040 such an important number?
1040 has been tested four times since the rally which started in March 2009. A number which is so crucial a support once broken becomes a crucial resistance.
Also the charts of S&P500 are now forming a pattern of lower tops and lower bottoms which is bearish based on Classic Dow Theory.
If this 1040 level is not broken on the upside for the S&P, things could get further bearish for global indices in the coming weeks/months.
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