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1 April 2009

Multi-Month Rally Ahead

Bull Bear Review

  • Multi-Month Rally Ahead
  • Technical Support for a Rally
  • Fundamental Support…CASH

The S&P 500 cash index just finished a very impressive 14-trading-day run from 667 to 833. This was a 25 percent move; CNBC tells us you would have to go back to 1938 to find a similar event.

Those of you familiar with this report know that I like to list reasons for the market to go up on the left side of the page and reasons for a declining market on the right (hence the “Bull/Bear Review”). Once finished one can stand back to review the weight of the evidence and have a good read on the near term (3 month) direction of the market.

Today that evidence, as seen below, falls decisively in the Bull camp. I am projecting a multi-month rally. My first upside objective is the 950 to 1,010 basis the S&P 500 cash.

Read the Bull Bear Review (PDF) >>>

Posted by Michael Chapman at 12:00 PM UTC

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