S & P 500 Index (1287)

Back on November 26th, 2005, I said it looked like the S & P was reaching for resistance in the 1300 area. Since then, it has indeed reached for 1300 three times, and on each occasion I have called for a meaningful correction. Each time I have witnessed both a correction and a rebound, without achieving anything near the downside target I envisioned.

I'm pleased about having recognized the importance of the resistance barrier in the area of 1300, but disappointed that we have not headed lower to my previously stated downside target in the 1200-1225 area. My 1200-1225 downside target remains unchanged.