Dear Bill,

The last time we spoke was in March and I had just gotten back into the market after a six month stint on the sidelines. At that time, you were looking for S&P to hit 1450 level into the summer.In the first week of April I had a little over a 9% gain.Since then I have given back most of my gains and as I write this am up about 3%.I follow your column weekly and see you are still bullish.Do you still see the S&P reaching your target?I am starting to get just a bit nervous.

Dear Kevin,

Yes, I’m still bullish. As a regular reader, you know that I have expected this latest pullback to bottom in the 1,300-1,325 range on the S&P 500 Index. Today we are at 1,315, so we may have a bit more to go. We could also overshoot that number by 20-30 points (i.e. 1,275-1,280). I wish I could be more accurate but unfortunately forecasting market levels is an art not a science.

Fundamentally, I am not a member of the doom and gloom club.  By the way, I do commiserate with your feelings of nervousness. No one, including myself, is immune from feeling that way when markets decline. I guess that is the price of being invested in the stock market.

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