Option Investor
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Some late-day selling has hit the market as those who bought a bunch of stocks they really didn't want, but had to have for their window-dressing exercise, now give them back to the market. There was also an effort to get March to close at its best price possible but it was too good a selling opportunity for many. Unless this will be just a quick pullback that will be followed by another rally leg (pink wave count on the 60-min chart) it's looking like the bounce to correct the decline has finished and now we're seeing the start of the next leg down. Two equal legs down from last Thursday's high is near SPX 757 so that's the downside potential. But there are several layers of potential support along the way (in case it will be just a quick pullback). The last line of defense before a larger pullback would be closure of today's gap near 788.

SPX 60-min chart:
[Image 1]

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