In a written report issued in mid-july, SunGard’s chief investment strategist noted that the signs have been pointing to a bullish trend for months. “But who would have thought that the S&P 500 would close above the 1220 resistance level on the same day that crude oil was trading above $60 a barrel? Life is interesting,” Dudack also noted that money has been on the sidelines for a long time, with much of the new liquidity in the hedge fund arena. “The Fed’s tightening cycle is key to changing investor psychology,” the report continued. SunGard’s team had called for a 3.5% 2005 Fed funds rate, and they expect that to be achieved on August 9 followed by a pause in the FOMC’s cycle.–Robert F. Keane