Key Battle Looms for Bulls and Bears

by Rick Ackerman

The broad averages took a breather yesterday, presumably to develop thrust for a rally to headline resistance not far above. For the Dow, the daunting round number to beat is 17,000, exactly 100 points above Wednesday’s high. For the E-Mini S&Ps, the equivalent hurdle lies at 2000, just 16 points north. Both numbers should evince a pullback, possibly tradable, but their durability cannot be guaranteed. And if they are exceeded on a closing basis, bears had better take shelter ahead of a possible short-covering binge on oft-freaky Friday.

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