Three weeks ago we posted our upside targets for this year. And little has changed since then to alter our outlook. Expectations for a new round of stimulus from the Fed have pushed the major indices back to their April and May highs:
Should the QE III expectations be confirmed at the next FOMC meeting in September, or should there be some positive news out of Germany and Europe in the same time period, there is little doubt that the indices will continue on their upward trajectory:
The chart below clearly defines the short-term state of the trend for the Sp500. Volatility has collapsed since the beginning of August, and price has been stuck in the middle of daily Hurst Channels which define support for the upcoming week at 1380:
