DEC'06 S&P500 ** 1336.75 OVERHEAD ** - The SP500 DEC’06 challenged good directional resistance at 1336.75 and was rejected. This is a good momentum area that has the potential to cap off the recent run for a healthy rebuke. A held violation of 1336.75 gets the index excited for a quick pop up to 1342. Stay nimble. This is the high point for any upside head fake. If the market is going to fade it will quickly move away from this area. A held trade and the frenzy looks to extend up to 1347 and 1356.50. 1370.50 and 1394 are the extended targets.
- 1326.50 is the base supporting any weakness today if the market is going to maintain a firm tone. Below here the contract starts to give ground, targeting 1322-1320. Stick and move. Reactions are expected. 1313.25-1311 is the low point for any sharp retreat if the market is going to maintain its composure. Only under here is a break in momentum confirmed, extending the losses down to 1302.50 and 1291.70. Keep your cool. No follow through is expected.
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