Powerful Rally

Powerful short covering rally today as the Fed provided unique relief for bad paper. The breadth of the rally was strong with big buy programs executed, indicating the bear may have to rest awhile before being able to mount another assault. Last weeks highs of the March contracts in SP500 and NQ100 are 1345 and 1773 respectively and a close over then this week would signal the lows for the first half of 08 are in. That would lead to a retest of 1420 basis the spot SP500 futures.