Tuesday, May 18, 2010

S&P500 Long Term Forecast (05/18/2010)

S&P500 Technical Analysis chart: "Click on picture to zoom in"

S&P500 violated the major uptrend channel that is going to change the market outcome in coming months. Please pay attention to 1110-1100 as the first support level. If 1100 would not hold S&P will head for 1052-1044 the February low. I expect to get a short squeeze which should last a couple days. If S&P500 could get above 1150 it would have chance to shoot for 1180.

In the case that 1052-1044 fails to hold S&P500 should tank to 880 the July 2009 low. I think we should hit 880 level by September 2010.