The now familiar weekend bailout is once again underway. The Congress is approaching an agreement, which is ultimately less awful than Paulson’s completely ambiguous blank check, but still not ideal. If passed, the temporary boost of confidence could cause global equity markets to rally in the short term, but reality will catch up as the global recession looms. I don’t think we’ll see anything but lower highs in the S&P, but we could see a 200DMA retracement. Watch key resistance levels around 1250, 1275 & 1300 on the S&P. If 1300 is broken, watch the 200DMA as resistance and look to build short positions if it is unsuccessfully tested.
