The expected 0.25% cut saw the market again edge higher in afternoon trade as the stock market held onto gains above 1%, significantly the futures held above the 4045 area. European stocks looked to lag in early trade & we drifted off to near yesterday's lows however a positive services sector report saw US equities rally & global equities followed suit – however volumes were light & analysts cited the strength more a relief rally than anything more significant. Tonight's ECB decision kept investors sidelined & with Benanke's testimony due on Thursday the market appears to be in a holding pattern. We have added a handful or so points to close near session highs at 4061 & are now in a position to test resistance located in the 90 /95 area on further strength – clearance of this area is required to confirm a low of some significance is in place. I favour selling into any further strength with stops above this area on a DAILY closing basis.

CASH CLOSE 4045.8 FAIR VALUE +5.3

EMINI 1284, DOW +27, GOLD + $ 5.6

SYCOM CLOSE: 4061 HIGH: 4065 LOW: 4023

RESISTANCE 4064/67, 4073, 4085, 4091/95**, 4102

SUPPORT 4044, 4035, 4023/26*, 4012, 4003, 3995