Given that the futures have not created any positive impulse legs on the daily chart since September, the burden of proof remains with the bulls. They were acting pretty frisky Sunday night, but that augurs nothing special, since Sunday nights often birth whatever flaky ideas have gestated over the weekend. Is Obama’s modest plan to create 2.5 million WPA jobs bullish, or bearish for investors? We’ll let history judge, but there’s nothing to suggest that FDR had much success with this plan the first time around. Regarding the Mini-S&P, it was pussyfooting with a midpoint resistance at 879.50 at press time (i.e., 9:20 p.m), but if it gives way, look for the rally to continue to at least 891.25. That target is not shortable, however, because it coincides with a peak made on the way down last Monday when stocks collapsed. What fascinates most about the hourly chart, however, is the 969.25 target shown. The pattern that produced it looks pretty sexy, and so any two-day close above the target’s midpoint sibling, 891.25, should be regarded as a warning of an impending moon shot.
