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This was an interesting week

This was an interesting week. The market sold off on what might have been construed as a double shot of good news. Consider the following chart.$SPX S&P 500 15 Minute Chartclick on chart for sharper imageDouble tops are taken out all the time. Perhaps this one is too. What is interesting however, is that this double top was formed when conditions were extremely oversold, in the face of what one might have thought was a double shot of good news. Double Shot Of Good News1) Bernanke all but admitted he was going to slash interest rates. The market popped on this news then subsequently gave it all back.2) Countrywide Financial (CFC) was on the verge of bankruptcy but was bailed out by Bank of America (BAC). The market popped on this news then subsequently gave it back. For more on the state of the economy and Bernanke's intentions please Read Between Bernanke's Lines: Things Are Going To Get Worse. Perhaps the market is finally sensing that rate cuts are not going to be the cure that everyone has hyped for months on end. My take on the Countrywide bailout can be found in Countrywide Buyout Deal Greased From The Start and Nationalization of the Banking System. Late Friday Herb Greenberg offered The Real Story on Countrywide.$SPX S&P 500 Weekly Chartclick on chart for sharper imageMarket Reaction Is Decidedly Not BullishGiven the decisive break of the 50 EMA a test of the 200EMA a 1320 is a reasonable bet. However, there is not strong technical support there. 1250 or 1150 are stronger technical areas from which to bounce. Kevin Depew, one of the best reads on Minyanville offered this opinion today.

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