Monthly Trading Plan S&P500 on a Financial precipice seeing direction on a monthly trading chart.

Trading plan, take a look at what happened when these monthly moving averages crossed.

March 30, 2001 we have a cross with divergence showing us a 600 point sell off from highs.

December 31, 2003 Bullish cross with a 700 point rally to the up side..

July 31, 2008 a bearish cross with a 900 point sell off from highs.

April 30, 2010 bullish cross with a 1450 point move to the upside.

May, 2016 upcoming cross or continuation to the upside?

We shall see.

Standing on this what is considered to be an over bought market, where the markets have bought too much, risk is not represented with a 0% interest rate, and a Central Bank policy of never ending printing and purchase of bonds and stocks. A reversal may not occur.

The question is:  What kind of intervention will we see on the next sell off?

To infinity and beyond! Central Bank Support will catapult to new market highs.

Will the Fed save us if we retrace to previous support and then sending us on to our next round of highs for 4 more years of corporate expansion?

Upside target of 2950.

Is this our reality?  If you see that the market has direction then buying the dips could be part of the monthly trading plan.

Reality hits the markets – targets for a falling market.

If Fed policy doesn’t hold watch for these areas of support.
With the worst case scenario back to 950.

If we break the major support at 1800.

If The market reverses, our next major support is 1550 to 1580 then 1350.

Major sell off support at 950.

We shall see.