A little more than a month ago we noticed the similarities between the current nascent rally and the November '11 - April '12 bull run. After a shaky start, the upswing is gaining momentum, and now is a good time to update the chart and revisit some upside targets:
There are a few things that stand out from this chart.
The more optimistic target, should the analogy be complete, is 1530 by the end of 2012. However, thus far the current rally is following a less aggressive growth path, which places the upward target within the 1430 - 1490 zone.
From a medium-term timing perspective, September 4th looms as the next hurdle.
From a very short term perspective, the importance of the 1395 support level can not be overstated. A break below opens the door for a retest of the lower channel at 1360, which also happens to coincide with Hurst Channel support: