S & P 500 Index (1288)

In late November 2005, I said we were in short term overbought territory, and I expected to launch into a top formation reaching for the 1300 area. Since then, we have formed the top I was looking for, and we brought in the New Year with a burst of enthusiasm that came close enough to 1300 to satisfy me on that score.

Now I see a micro-top possibly forming here in the coming week or so, followed by an intermediate term correction of up to six weeks duration, to the area of 1200-1225 on the index.

Taking this into account, my intermediate term stance remains neutral positive.