Tuesday, March 31, 2009

Possible path of the S&P 500 over the next week or two pointing to re-testing 760

Taking a step back from the short-term action and looking at where the S&P 500 may go over the next week or so, here's one way (among others) that we could see a pullback that would still have the potential to resume another leg of the rally upward. I do recognize there are other possibilities, including that the rally could move up into the mid-April time period. And my label for this post refers to Tony Caldaro's Objective Elliott Wave, but these are just some EW comments of my own. I just want to post this to keep an eye on what may happen if we fall under the 50-day moving average soon (even though a trading buddy has passed on some talk that certain fund traders won't get bonuses unless the index closes today above that average! so let's forget about today and think, what if it loses that 50-day moving average later in the week):

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