Projections for the S&P 500

Discussion in 'Trading' started by marketcynic, Oct 25, 2009.

  1. Right now, most traders are in agreement that the market will be unsettled and a bit weak for the next few trading days, but once we get past the next couple weeks, with the Fed and nonfarm payrolls report 2 weeks from now, people are projecting a rally to the year end based on a chase for performance and the Santa Claus Rally.
    I have other things in mind. I believe we will sell off next week and then rally at the beginning of November and then selloff again more sharply surprising those expecting the year end rally as the economic realities and overoptimism about the market takes the market lower. Then I expect a sharp rally at the beginning of January which will test the 52 week highs.

    This is all still far away into the future so I don't want to get too far ahead of myself. Anything can happen, but its better to have a general projection and make adjustments based on market action than to fly blind on the seat of my pants.