Sunday Evening Post: S&P 500

Hello All,

This update is really only focused on the S&P 500, which had an outstanding performance last week.  The bottom line is that this market is once again knocking on the door of the previous highs.  That is not a sign of a market that is "peaking" at all.  Markets that have peaked have no business going back to its previous highs.  It seems like a higher probability event that we will take out 1344 sometime this week.  The wave count, though, suggests that if we do break to new highs this week, it will likely be a "bull trap" as there is a zone of technical resistance between 1367 and 1380.

So, if one plans on "buying the break" to play the momentum up, just stay nimble.

SP500 Update 24Apr11



Addendum:

I caught this interesting interview on "disrupting" the educational system.  It's a subject near and dear to my heart.  What was most fascinating, though, was that it was JEB BUSH spearheading the effort.



After listening to the interview, two things struck me:

1) George and Babs Bush are wishing Jeb had been just a little more experienced in 2000 as he would have burnished a much better legacy for the Bush Clan.  This guy has always seemed more competent and intelligent than his elder brother.

2) Jeb Bush would be the leading Republican candidate in 2012 if his name wasn't "Bush."

This fellow seems like a "Clear Thinker" to me.
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One of our readers, Jennifer, was wondering about the Silver Wave count, specifically what the labelling of the move lower was in 2008. Attached here is a chart I created in September '09 that highlighted that wave count. The move lower was not impulsive and the wave up was not impulsive either. It turns out Silver was probably in a massive, multi-year triangle, which is why all the various 'legs' were corrective and which is also why we saw such powerful move up once the triangle concluded August 2010.