S&P 500 - More upside to come

Having broken clearly above 1.247,00 odds favors S&P 500 continuing higher towards at least the 1.289 - 1.290 area.

The clear break above the 61.8% retracement target for the decline from 1.576.06 to 666,92 has moved focus towards the 78.6% correction target near 1.382,91 and then close to the 1999 and 2007 tops in the 1.553 - 1.576 area (likely slightly above - See the chart below).

Looking at the internals of the current rise from 1.011,52 in early June we should see a minor top in the 1.289 - 1.290 area calling for a correction towards 1.172 - 1.173 area before the next rally.

A top near 1.290 followed by a decline to 1,172 would also fit the Armstrong & Brenner cycles, which are calling for a top in 2010 followed by a bottom in April - June 2011.