The S&P blew through the daily resistance line, and is maintaining above there for now. There is enough
downward energy though that I expect a visit down to that line, today at 1069.00, at least once after this initial
piercing. Use 1079.50 as resistance to keep that thought in play. The high, a double high now with this morning
is 1082.50, above there and we move toward the 1086.00 longer term “heavy” line, and this is where I believe the
upward energy we have seen begins to dissipate. So the basic parameters are 1086 down to 1069. There were a
lot of shorts in this market which helped fuel the over extension, and the Bond – Note complex deflated off their
highs, first time in a while, and we probably received some rotation from out of there.

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