Look for these key dates this month--
May 8th a possible short term high?
May 18th a possible high?
May 21st a possible short term low
SPX 1012 is the upside cyclical target high for this rally. That doesn't mean it needs to be reached, it's just a target.
The SPX is now overvalued on GAAP.
Also, here's a stat you might find interesting:
The fall from the Oct 2007 high to the March 6th low is almost EXACTLY 61.8% (fibo magic number) of the run from the Aug 12th, 1982 low to that Oct 2007 high. Amazing isn't it?
But be carefull because this stat is even more intriguing:
When the DOW fell in 1929, the ensuing rally off that decline was, can you guess? That's right - 61.8% from Nov 1929 to April 1930. Then what? From May 1930 to July 1932, the DOW then fell another 90%!
Will history repeat itself? There's no way to know. But the pieces are in place for it to happen.
