Technical Reversal Before Fed Decision on June 28th, 2007

The S&P future, after narrowly posting a new June low before SPX cash opened, proceeded to rally the whole day and broke the high of the previous day posted @ 1519.25. This is a technically bullish development, and combined with the bullish divergence that has been seen over the last 2 days, I think the market will stay strong into month-end, barring any unforeseen hawkishness from the Fed tonight...

Upside resistance in the SPX Sep futures is at 1529-30, support is in the 1508-05 area. Buy weakness, especially toward those support levels, would be my preferred intraday strategy today.