Archived IMT (2009.04.14)

The oft-mentioned 860-865 level in the S&P500 denoting the +30% rally mark from the March low was tested yesterday without closing above it, illustrating the significance of implications for the latest equity rally. Although the S&P500 breached above the 50 and 100-day MAs, the latter MA stands halfway between the 200-day MA (989) and the March low (666). The wide disparity between the 100 and 200 day MAs suggests the speed of the recent rally, which remains dwarfed by the longer-term trend. 101.65 in USDJPY and 865-870 in S&P500 continue to act as key barriers. Also note how the Dows gain from March lows was only 25%, compared to 28% for the S&P500.