The major stock indexes set 19-month highs and are poised to test important technical resistance. The highs come one week after the Securities and Exchange Commission (SEC) filed civil fraud charges against Goldman Sachs, which many analysts blamed last Friday’s sharp downward correction on.
The Dow and S&P 500 settled at their highest levels on a weekly chart since the week of the Lehman Brothers bankruptcy in September 2008. The Dow is poised to test the 61.8% Fibonacci retracement of the move from the 2007 high to the March 2009 low.
