Tuesday, June 16, 2009
The S&P came very close to it's yearly S1(pink line S1) pivot last March at 640. Now after a 40% bounce, it's close to the yearly pivot point at 1003(yellow line). That's been my target since this rally started. It's also 50% off the March lows (666 +333=999). This is why I feel this rally will end in the next 30 days and then we will retrace 50% of the rally (333 / 2=167). The pullback could bring the S&P back down to the 825 to 850 level by September, where we still have open gaps. Raise cash if your long in the next few weeks or hedge them with options or inverse Etfs.
Posted by Jeff York at 5:19 AM