Todd Harrison, CEO of Minyanville_com

http://www.minyanville.com/

Posted Jun 26, 2009 10:37am EDT by Aaron Task in Investing
Related: ^DJI, ^GSPC, SPY, DIA, ^IXIC, QQQQ
With the “animal spirits” alive at quarter’s end, the S&P 500 has window to make a run at 950, “the most important level of the year,” according to Todd Harrison, CEO of Minyanville.com.

Why is 950 so critical?

It’s the upper band of the 875-950 trading range the index has been in since early May and just below the index's post-March high of 956 (intraday on June 11). It’s also “confluence of [technical] trend lines,” says Harrison.
How big is the “window of opportunity” to break through?

The next week to 10 days should be telling because of acute performance anxiety among money managers at quarter’s end -- “underperformance is a four-letter word” on Wall Street, he says -- and the cash inflows that will likely occur at the start of the new quarter, especially if the second quarter ends on an up note.
Such considerations almost certainly contributed to Thursday's 2% rally, and fueling hopes for more gains to end the week.

Breaking above 950 would lead to another leg for the rally, similar to the breakout above 875 back in April, which Harrison discussed here on April 30. Then as now, he believes the market is “traversing through a W-formation” and suspects 950 could prove to be the middle peak.

“We should know in relatively short order,” Harrison says.