S & P 500 Index (1335)

During the past week we nudged above the important May/06 resistant level (1326). The next short term resistance boundary is in the area of 1355 along the uptrending channel.

I had earlier called for a rally out of the summer months into October. Now I will be pleased if a correction develops once we have achieved the short term price target set out above. If we do see a correction in October, I will pay attention to it because the intermediate term trend, though positive, is getting long in the tooth at this time.

The long term outlook remains favorable.