SPX Rallies off S1 Again

Due to the recent drop back to S1, we are abandoning our 1455 objective. The horizontal trading in range in DEC06 now appears to be unimportant as the top, 1430, has not supported the SPX on any real retest.

We are now thinking that a narrow upsloping trading range will develop bound by S1/R2. If that is true, we are nearing resistance now.

We also feel that this market is far overdue for a 10% correction.

Therefore, if the SPX is still above 1435 at our fund trading cutoff time, we'll exit our market positions not controlled by mechanical methods at today's close into 100% cash.

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