S&P Set to Accelerate

With one hour remaining in today's session, the upside "squeeze" pattern that has been carved-out after the 4/17 pivot low at 1280.74 continues. Notice that every pullback has held and turned from a higher-low, the last of which was yest. PM at 1303.92, which has resulted in a rally to today's high at 1315.14 so far. The series of higher-lows continues to press the SPX up towards the 1315-1318 series of highs. The pattern argues that the bulls should squeeze the SPX up through the horizontal highs, triggering acceleration to 1325-1330 thereafter. A reaction to tomorrow's EMPLOYMENT REPORT? Perhaps. Only a plunge that breaks 1303 will damage the developing squeeze pattern. MJP 05/04/06 2:45 PM SPX 1311.90; SPY 131.27

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