Waiting market to hit 1140-1150

The S&P 500 Index down 5.4 points, closed at 1120.46. Market is digesting the 27 points gain on Monday and the high 1127 on Monday may act as a temporary pause (June resistance 1131). Nonetheless, I still believe market will head to my target 1140-1150, as well as the ultimate target 1165-1175 if the momentum is at extreme mode. We are in the third wave of this rally, market need to retract some points first before heading to those high. I am waiting the market to hit 1140-1150 to place my short order.

Yesterday I posted my bearish view about this market, and I also pointed out that the phase II bear market will be here if the market act as I predicted. On the other side if the market want to prove I am wrong, it needs to fulfill some requirement.

What is needed now for an intermediate broad market turn north is that all of the key indices — Dow, S&P 500 and Nasdaq — must break above their 200-day moving averages, as well as the June 21 high, before their trend changes. Additionally,S&P 500 must breach the close of Jan. 18 and 19 at 1,150. In the mean time I really doubt that this move will result in a major market reversal although all of the above indices did break  their 200-days moving average. The long-term trend is still down, the intermediate trend is still neutral, and the near-term trend is up.

I will keep watching the market movement everyday, I am curious to see how the current economy with high unemployment, high federal budget deficit, high nation debt, high municipal debt, low consumer spending, low government spending, and low investment spending can save this country from recession so fast so soon.