Potential temp high

The S&P 500 rose on Wednesday and the blue-chip Dow hit a record high after tepid consumer price data for February calmed inflation worries and Congress gave final approval to one of the largest economic stimulus measures in US history. Investors paid little attention to the Treasury Department posting the latest deficit numbers which showed the US ran a $1 trillion deficit from October through February, compared with $624 billion during the same period a year earlier. Federal outlays totaled $2.5 trillion, a 25% increase, while total receipts rose 5% to $1.4 trillion, both record amounts for that period.

Today, the S&P 500 closed at 3898.81, up 23.37 points for the day or .60%.

For the last couple of weeks, the Trend Letter Forecast Model  has been signaling we may be approaching a temp high for the S&P 500 sometime next week.  The target high is 4000-4020 and if indeed we do see a reversal at that level we could see two-month decline to the targeted level of 3150 in mid-May. If this plays out as forecasted, we could  get a BUY Signal in May.

Understand, this is a dynamic model and is updated at the close of each week. If we do not see a high next week, the model will then adjust and create an updated forecast at the end of next week.

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