S&P 1339 looks like the Objective for this Bounce

Politics may be the main influence for this rally rather than yesterdays GNP numbers.  A lot of excitement is in the air, Obama provided a comprehensive progressive plan in his acceptance speech and McCain is going to announce his running mate today.  While McCain has been rising in the polls and CNBC’s Kudlow thinks this is a McCain victory rally, the Fat Cats are no doubt scared as Obama announced last night that 95 percent of the population is going to get a tax break.  That leaves 5 percent who will have their taxes raised.  Regardless, lets look at the market technicals which are more important at the moment.

Yesterday we said that the longer term technicals are leading and the intermediate signals have not activated yet.  To that I would say that usually the shorter time frame chart signals are in place before the longer time frame signals for any particular move, but not always.  When they evolve like the current formation usually you see a quick reaction top as the intermediate signals change right at the top, that is what I see here.   We should see a quick hammerhead top once the signals click, haven’t clicked yet.

7:50 AM CDT