SP 500 achieved the head and shoulders target on Friday, May 18; falling 72 points from the break in the neckline and landing right on the predicted number (intra-day) of 1292. This is a resistance and pivot area, as viewed in the chart below. Should it break, the next decent support is the 200 ma coming in at 1278 and then very good resistance just underneath at 1269. So, barring a real collapse in Europe, the market should be primed to rally. My cycle analysis suggests that a turning point is on Tuesday, May 22, +/- 1 day. The market has more of a bear than bull flavor at this point, so I am only expecting a 50-70 point pop back up to the 1340 resistance area, or the lower side of the neckline. I expect the rally to last 8 or less trading days, and I am as interested as you to see what happens.
