Wednesday, August 16, 2006

S&P Bull Market Boxes

Here is a weekly chart of the cash S&P 500 showing the 185 point bull market boxes that have controlled the big swings within the bull market that began from the 768 low in 2002. I last commented on this chart here.

The market's reaction from the 1326 high in early May started from the top of a box and ended in June at the 1/2 point of the same box. I now think that the S&P is headed for the 1/2 point of the next higher box. This is the 1417 level and I expect the market to reach this target by the end of the year.

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