Sunday, May 3, 2009

S&P500 Possible Moves in May (Technical Analysis)

"Please click on the picture to zoom in."
This forecast is based on Elliott Wave Theory and resistance support lines. S&P has been wrestling with 880 resistance in past 2 weeks, please see my post "The Importance of 877-880 Resistance". I give 5% chance of continuation of this rally, I expect it would run out steam at 940 which coincide with 200 SMA & EMA.
Note this rally is not healthy because it failed to make a base and kept moving up with no pullback. Continuation of this bear market rally to 200 SMA & EMA will make the pull back very painful.