Some of my subscribers were asking for a bigger chart of the S&P chart and so I have blown up my previous chart below.
I am going out on a limb here, but I think it is possible we will see 1500 soon on the market. Yes! you did read that right! I said 1500 for many obvious reasons if you look back at our previews posts!
We warned a drop could be coming first, and that is what has happened over the last few days. This smaller drop could continue, be we feel it is just a smaller blip move before a larger upward thrust is coming later and into early 2013.
If we having a look at the SPXA50 market breadth chart you have can notice we have rallied quite nicely off the BUY ZONE in november. This rally was quite violent and quick and after such a move we might like to cool down and sell off a bit. (see above chart)
We are only just past half way, and again that is confirmation that if the market takes a short term break, there is plenty more room on the upside. And that is also another confirmation that 1500 could be coming on the S&P 500 soon.
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