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Struggling to Hit 1,700

Since the S&P 500 hit the 1,700 mark at the beginning of August it has struggled to reach the level again. You can see from the chart below that there is clear resistance at the 1,700 level. Let’s assess why this might be.

(Chart source: MSN Money) 

First off, the economy is not growing as fast as we would like it to grow. Unemployment is still about the 7% level. Second, there are a number of important political events in the near future that can have a major impact on the economy: Debates over the debt ceiling and the government budget.  Third, there is concerns over the tapering of the fed stimulus. Finally, who will be the new chair of the fed? These are all major concerns, and the markets are watching and waiting.