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Pro: Levels to Watch on S&P

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There is no debating that stocks are in an uptrend.

However, there are a number of negative forces in the market. Look no further than the poor Chinese data released Wednesday. The S&P 500 index is currently in a six-point range as it continues to find support against our major 1,433 - 1,434 level. I will say this again, the S&P has provided a great range trade all week as it awaits a catalyst to break out.

The level I’m watching? 1,450.

Well, because a close above that level will encourage further buying into Thursday's European Central Bank meeting and ahead of nonfarm payroll data Friday. A close below Tuesday's low, and even against the mid 1,430s, will keep traders on the sideline as it would give the market a very heavy feel. I do not see traders pulling the plug on longs, however, until they see poor data. Remember this has been a light volume rally for months. Even the sell-off is light volume. With that said, the level I’m watching Wednesday will be the mid 1,430s.

And to be clear, I’ll be looking to buy there.

Read on for 10 Things You Need to Know to Trade Futures

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