They say if the broad stock market gauge can stay above that key level -- and psychologically important big, round number -- the market has a better chance of avoiding a more significant decline, such as the dreaded 10% correction.
The market could be setting itself up for a rebound. "Daily momentum indicators have moved from overbought levels in late June back toward oversold levels that often -- and usually -- accompany trading rebounds," Sluymer wrote to clients.
Another reason 1900 must hold is it represents the market's long-term uptrend, which investors don't like to see broken. The 1900 support held up during market dips in March and May.
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