SPX closed yesterday at $1868, just below support at $1870. Today SPX traded down as low as $1854 before rebounding to close at $1868 for a gain of one dollar on the day. Earlier today, I was watching the tape and thought, "support is truly broken". But later I had to conclude, "maybe not". Hence the title of today's blog, Clinging To Support. RUT posted a gain for the first time in six sessions, rising $4 to close at $1191. Volatility was largely unchanged with the VIX closing at 14.5%. Trading volume in the S&P 500 was flat at two billion shares. Trading volume on the NYSE dropped 4% and volume decreased 14% on NASDAQ.

The long lower shadow on the SPX candlestick suggests support was found in the neighborhood of $1850, the highs from December 31st and later in mid-January. So maybe we wander sideways for a while? Is that the form of the pull back this time?

I came across an interesting report on margin debt this afternoon. Stock account margin debt is now around $460 billion, exceeding the peak of approximately $380 billion set in 2000 and hit again in 2007. So we have yet another set of data confirming this bull market should be tired. But all of this data ignores one big difference as we compare past markets to today's market - the FOMC.

So maybe the bull has more life in him...