Since December 2010 I've been saying we should see an incline followed by a drop into mid-June 2011. It seems we are getting that drop currently. Targets for this drop were 1273, 1250 and 1220. On Friday I bought my first batch of SSO which is a 2x SP-500 ETF. The bears will say we're in wave 1 of P3 down, I say when will they give up?? Listening to Prechter would've lost you nearly 30%. Listening to the P3 crowd is NOT working. The support level for the SP-500 in 2011 is 920. THERE WILL NOT BE A NEW LOW MADE UNDER 666.
A yearly closing over 1220 in 2010 was a bullish signal. This bull market should last until late 2014 or early 2015. This should be the greatest appreciation of your wealth since the 2009 low. If you choose to try and short the market and not receive this gift that's up to you. I'm scaling into long term long positions for my IRA and my trading account.
On a side note, the Australian Dollar should also aprreciate during this timeframe. I have a bank account holding AUD. I sold half of my AUD when it reached 1.10 v. the US Dollar. I'm now rolling that half position into gold and holding the other half in AUD. I will sell that position when AUD/USD is at 1.76.
Here's my long term chart with annotations
And here's my weekly cycle chart