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Stocks firm after NAPM

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Stocks have traded lower since the opening of trading, but stocks have firmed after today's release of the September NAPM number, which came in a little stronger than some had expected, with a reading of 47.0.

The S&P 500 is trading down just about 1% at 1,030 and traders will be watching our 61.8% retracement level at the 1,026 level. This is from "fitted" retracement we put into place two weeks ago when the SPX broke to a 52-week low.

S&P 500 Index (SPX) - last nine months

There's not a lot going on this morning, but one level we'll be watching on a broader market index like the SPX is the 1,026 level. A break there could see some selling pick up and the psychological level at 1,000. MACD on the daily interval has crossed over and turning higher, which may have some bears sitting on the sidelines and waiting for a break of the 1,026 level before implementing any new positions.

Jeff Bailey
Senior Market Technician

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