Market Analysis for Dec 13th, 2005

Ahead of the FOMC rate hike and possible policy re-statement, the e-SPH continues to bid time -- but right at the high of the session near 1271.50, which also happens to represent the coordinate of the minor resistance line off of the 12/06 high. If the reaction to the FOMC statement pops the index to the upside, we should expect an immediate spike that tests -- and possibly hurdles -- the prior rally peak (12/12) at 1273.75. Conversely, if the knee-jerk reaction is to the downside, we should expect a down-spike that tests and breaks 1267.75 on the way to a test of the minor support line that cuts across the price axis at 1264.50/25.

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