The market had a strong performance on Tuesday with the Standard & Poor’s 500 Index perking up 1.6%. If you were following my forecasts, then you could have profited from this strong rally on 07/19/11.
Time Cycles alongside the technical indicators advocate a potential S&P rising up-to 1,444 (1,450 area) over the next few months.
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US Stock Market long term Forecast
S&P chart 7-20-11 |
The stock market experienced deep correction selling in the first half of June, thereby generating a contrary buy indication that ultimately manifested in late June (on 06/16). The bearish anxieties are overstated. If the S&P can surpass the 1,355 highs (which it would soon), then we’ll have a blueprint of higher highs and higher lows, and that would set in motion the targets first 1,420 and then 1,440 area. However, a close below Monday’s lows at 1,295 would cancel out that bullish picture.
See the chart attached. These dots represent the resistance, namely 1,367, 1,385, 1,399-1,401, 1,417, 1,429, on its way up.
