Stock Market Ups and Downs for the Next Three Months

S&P-500 has increased around 5% during the first decade of July. Evidently, the stock market was uplifted by investors' optimism. One of the most important fundamental factors that causes this uptrend was strong second-quarter earnings reports. Also other positive news factors stopped sliding down S&P-500 index.

From the technical point of view, downs and ups follow each other. Any action normally results a reaction. To discover periods and amplitudes of this natural market fluctuations, some investors use a cycle analysis. The cycle analysis also can be used to predict the further fluctuations. The following chart represents S&P-500 forecast for August-September-October, 2010. The calculation has been performed using Stock Market Predictor SMAP-3.



Possible prediction from the current 1078 value of S&P-500 is the following. It can increase in about 3-5% in the middle of August and then decrease below 1000 level in September. Then it can reverse to an uptrend again. However, as always - such technical prediction may change if something fundamental happens.

Nothing in this piece or blog should be construed as investment advice in any way. Always do your own research or/and consult a qualified investment advisor. It is wise to analyze data from multiple sources and draw your own conclusions based on the soundest principles. Be aware of the risks involved in stock investments