Stocks: Any Relief Will Be Brief

S&P says a short-term lift is possible, but when the advance runs out of gas, the S&P 500 could fall through its 1370-1407 support zone

One by one, the pillars of the bull market are getting knocked down, and the bull is suffering a slow death. Besides the debacle in the financials, consumer discretionary, and transportation stocks over the last six months, we can now add the small- and mid-cap stocks to that list. We think it is only a matter of time before the large-cap indexes break down as the S&P 500, Dow Jones industrial average, and Nasdaq are all sitting on the precipice, and we don't think it will take much more to push them over the edge.

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