Friday, June 17, 2005

S&P: Next Stop 1326?

The daily chart you see above shows the current bull market box for the cash S&P. These boxes are 186 points high and start from the October 2002 low at 768.

In March 2005 the S&P nearly reached 1233, the ½ division point of its third box and then reacted down to the bottom of that box. The market now is in the midst of a move that should carry at least to the top of this box which is at 1326. My suspicion is that the upside potential is in fact much greater and that we may well see the S&P reach the ½ division point of its fourth box, the 1419 level, by the end of this year.

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