Take One: My Prediction

Albie's Take:

My predictions for the S&P500 are that we will see it arrive at the Monthly Resistance this month or next and that after that time stocks will take a downturn toward Monthly Support - which should last some five or six months. Of course, this is not accounting for any catalyst that should turn the tide to break Monthly Resistance and head up to the Highs of 2007. From more of a fundamental point of view, it seems that things are going better for the U.S economy as of late. We seem to be taking a turn out of the 'mud', so to speak. So I honestly cannot tell you what the catalyst to go lower will be upon reaching Monthly Resistance.

My analasys of the Daily and Monthly Support and Resistance is as follows: The S&P500 was riding Daily Support last week but this week has gains going half way up towards Daily Resistance. It has gained new highs in Febuary and March of this year, excellerating up past the Highs of May 2011 and going up past that Resistance line. Technically speaking, the Daily Resistance line should be drawn much lower, as of last weeks major drop but it seems to have broken past those grounds and is back on track with its old Daily Support and Resistance lines. It now is heading toward Daily Resistance of 1418. If the S&P500 has no catalyst that takes it lower, it will in time head up to its monthly Resistance of 1434.4. I expect profit taking and a drop to Daily Support though, before that time. Even if it gets to Monthly Resistance however, it still has 2007 Highs to beat at 1575.1 Why does all this matter? Well, my opinion is that the S&P500 will find a catalyst at some point to gravitate back towards Monthly Support before it ever tries to break through 2007 Highs.