S&P 500/SPY Pushing Critical Near-Resistance
After this morning's swoon to new reaction lows at 129.59 in the SPY (S&P 500 EFT),
Fed Chairman Bernanke released his prepared text ahead of
his Congressional testiimony-- and wow! The indices rocketed
in reaction to his clear suggestion that the Fed may pause in
its rate hike cycle. As we can see from the enclosed hourly
chart, the price structure is pushing up against critical near
term resistance between 131.00 and 131.13, which if (when)
hurdled, the SPY should accelerate towards a retest
its 4/20 high at 131.86. At this juncture, only a plunge
that breaks 129.59 will weaken the near term chart
pattern. MJP 04/27/06 11:15 AM ET 131.05
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