SP500 Target: 2128 - 2166 STRONG CHANNEL SUPPORT & FORECAST

I think the SP500 has room for one more leg up. I believe it is a wave 3 on a daily chart. If it falls slowly, then, as I show in the chart, there is plenty of support in the August 2015 coordinate at 2026. As far as the trend holding as these levels, I think the SP500 will make one more rally up to 2128-2166, then fall back to 2026; however, if I am wrong and it falls sharply within the next two weeks, then there is plenty of strong support as labeled on the chart. If it falls straight down below like a train wreck, then it will just hit the bottom of the STRONG, long-term GREEN channel (brown line) sooner than I thought. As far as the economic outlook is concerned, this is not highly probable, as the my leading economic indicators point to an increasing economic expansion this year (right now we have only JUST begun the US economic recovery, which has been slow).

SUMMARY:

SP500 Target: 2128 - 2166

SP500 Resistance: 2119.4

SP500 Strong Support Area: Between 2011 to 1998

as of April 3, 20125