Key Reversal Session for S&P 500

This is shaping up to be a classic KEY reversal session in the aftermath of marginal new highs in the SPX at 1314.07. We can see from the enclosed hourly chart, that the SPX has plunged beneath its prior pullback low at 1302.94, which represents the initial signal that a significant price peak may have been established. However, let's notice that the sell-off has extended right into the lower portion of the recent trading range between 1310/11 on the high side, and 1295/92 on the low side. A violation of the lower side of the range will confirm the establishment of a near term top in the SPX, which will project weakness into the 1282-1280 area at a minimum, and into the 1275- 1270 area thereafter (for a test of the March lows perhaps?). At this juncture, only an ability to preserve the 4/04 low at 1294.71 followed by a rally that climbs and sustains above 1305 will neutralize the weakness-- and potential weakness-- triggered by today's reversal decline. MJP 04/07/06 Noon 1298.19

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