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S&P Recovers from Misunderstanding
By Mike Paulenoff | Published  05/2/2006 | Futures , Stocks | Unrated
S&P Recovers from Misunderstanding

It was exactly 24 hours ago that Maria told her CNBC audience that Bernanke's comments from the prior Thursday (a pause in rates) were misunderstood by the markets. Right now, the e-SPM is trading at 1316.25/50, which is just about (maybe a touch lower) than it was trading yesterday at this time. Although today's recovery was impressive after yesterday's plunge, from my perspective, the pattern has not changed much (as a result of today's recovery). The coil remains intact, and the index is stuck between 1320-1322.50 on the high side, and 1307/05 on the low side. Whichever side of the range is violated first should trigger a significant move in that direction. And as of this moment, I do not have a high confidence projection for the direction of such a breakout, and that goes for the SPY and the SPX as well. With that in mind, I will stand aside and watch for several more trading hours.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.