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Stock Market Speed Bump S&P 500 Now Poised For Short-Term Dip (How Much)

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The stock market looks like it is poised for a short-term pullback, because on Friday we saw big selling across the board in almost all sectors of the market. The DOW fell over 700 points and the S&P 500 dropped 1.71%.

However, a pullback off of highs is not a bear market, but a simple speed bump.

That means a dip to a support level and sideways action.

Right now the S&P 500 has support at its 50-day moving average and its most recent low of the other week. Both are around 6000.

Below that support is at the January low and 150-day moving average, both of which are right around 5800.

If that were to happen it would represent a roughly 5.7% percent dip from its high and no big deal.

Markets do not go straight up every single week, so don’t be shocked if there is dip over the next few weeks.

In fact, people should consider a dip to 5800 as a buying opportunity and not a time to sell out if it happens.

This weekend in my WSW Pro update I explained what I believe is likely to actually cause the next bear market and when.

You can find it here:

-Mike

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