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Technical analysis certainly has its flaws, but at the bare minimum, it gives you reference points for entries and exits. There is no technical level more significant than the potential double bottom in the S&P 500 index futures. 

Last Thursday, the index made a new low for the move at 3855, which provided the foundation for a rally to nearly 4100. In Thursday’s session, the index made a premarket low of 3856, which was not even sniffed in the regular session. Clearly, the key to the next major move in the markets will be whether or not the index can distance itself from that low.

The index posted a new closing low for the recent slide, falling 25 handles to close at 3897.75. That eclipsed the former low for the move by a significant margin which was Wednesday’s close of 3922.75.

The biggest gainer of the top components of the index was UnitedHealth Group Inc. (NYSE: UNH). For the session, the issue gained $7.17 or 1.52 percent to close at $478.55.

That was over 2 percent better than the cash index’s decline of 0.58 percent.

A strong negative for the long-term direction of the index was that its top component, Apple Inc. (NASDAQ: AAPL) was the biggest loser. For the session, the issue swooned $3.47 or 2.5 percent to have its lowest close since October at $137.35.