Stock-market bears seen keeping upper hand as S&P 500 drops below 3,900

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The S&P 500 has dropped below 3,900. That is a very bearish sign for stocks.

The S&P 500 index on Friday broke below a closely watched support level that could augur a deeper slide, chart watchers warned.

“Index options will expire on the open…, so a lot of that option gamma that has helped to support the market will be gone at the opening,” said Michael Kramer, founder of Mott Capital Management, in a Thursday evening note.

 

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