S&P 500 Index Analysis (8/27/2010)

Analysis:

Today the S&P initially acted strangely, and it is most puzzling when it
dropped sharply after 10 a.m., perhaps having to do with Intel's ill-timed
announcement at 9:58 a.m. The better than expected downwardly revised Q2 GDP
to 1.6% provided a sound backdrop for the Bulls to start with, and Chairman
Bernanke's comments at 10 a.m. gave assurance to the much battered Bulls, so
the market never looked back after a brief swoon at 10 a.m. Now that the
market has bottomed out from the 1,040 area, it will continue to build on the
upward momentum on Monday.

Strategy:

Hold a long position with a limit order to reverse at 1,082