Euro is the key (March 30, 2009)

There are talks for ECB to lower interest rates by .50...hence a big tumble in Crude Oil prices back to the 50s.

Without commodities providing support for this rally in equities, the rally has to be fueled from somewhere else. After going through most of my charts most of the equities are touching or right beneath significant levels of resistance.

So I will expect the SPX to pullback coming into April, perhaps it might hold 800 this week but I expect a sell off to somewhere near 796 followed by 770.

However, do be prepared for any surprises especially from the Financials, Consumer Discretionary, Transports to resume any rally.