The S&P 500 200 day moving average is at 1249.09. That’s also the March low. There is very little in the way to stop it from reaching this very obvious road sign. Traders will force the issue. The question will be can it hold. There isnt’ any real long-term support at even those levels. We will need stepped up insider buying, M&A, or a rash of stock buy backs and/or dividend increases to offset the perceived lack of government spending. The end of QE 2 combined with the Republican party’s zeal to curb the budget defecit will decrease any momentum for Government spending. That’s a big headwind.
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