A Sell Sign from the S&P 500?

The Standard & Poor’s 500-stock index closed above 1,114 yesterday, and Evergreen Investments chief market analyst John K. Lynch is waiting for the benchmark his 1,120. What’s so special about that level? Lynch says 1,120 represents a 50% retracement. That is, the S&P 500 fell to 676 in March from the October 2007 peak of 1576. So 1,120 is about the half-way back marker.

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