Back on September 25th, we wrote that the S&P 500 needed to break 4300. It has broken that level and now the questions is do we need to break 4200 on the index?
The retracement of the March low to the July High brings us to 4207.97. We got close to that level on Tuesday as the S&P 500 hit 4216.45. Note the 200 day moving average (red line) is at 4203.81. Not testing this levels would be a waste because?
We would be doomed to test them if we rally from here. That is pretty simple logic and tends to work well in corrections. Save your powder for when there is blood in the streets.