S&P 500 (SPX) Remains Constructive
I am not sure what to make of today's action in the
e-SPM. The earlier intraday break below 1312 only
triggered a follow-through to 1210, where the index
pivoted to the upside for quick 10 point spike. The
only thing my work points out is that the intraday
pullback to 1210 preserves the overall series of
higher-highs and higher lows off of the March and
Feb. lows. From that perspective, the e-SPM remains
very constructive. On the otherhand, the index still
must hurdle March-April resistance between 1320
and 1321.25 to trigger upside acceleration to my
next optimal target zone of 1325-1330. Only a failure
to climb to new highs followed by a decline that
breaks 1310 will begin to compromise my current
constructive outlook.
MJP 04/06/06 2:45 PM ET (1317.50)
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