4/27 THE CHARTIST We do not anticipate much of a pull back from current levels; but, if we are wrong, our eyes will be on the March 27th intraday low of 2322.25 on the S&P 500. This is an important support level which, if broken decisively, will set the stage for a more serious test of all the indices. We will also be watching the Russell 2000 where support is in evidence at 1335.04 and as well as the S&P 400, which tracks midcaps where support is at 1673.30.
When it does we have found that the odds are weighted in favor of higher prices over the next 60 days.
Note, we came very close to a short term buy signal on April 10th. The last short term buy signal was on February 14th
The Value Line Geometric and S&P Midcap Index have also significantly outperformed the S&P 500 over the period and are right on the verge of making all-time highs. The Value Line Geometric similar to the NYSE Advance/Decline Line has a tendency to lead the market at juncture turning points.
It gave ample warning before the last bear market peaking three months ahead of the S&P 500. It also peaked well ahead of the S&P 500 prior to the unraveling of the dot-com bubble back in 2000. It also topped out well ahead of the 1973-74 debacle.
