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Charts Predict: S&P 500 May Rally to 1,100

We probably saw the lows for the S&P 500 index in November, Chris Locke, MD at Oystertrade.com Management, told CNBC Wednesday.

"We are going to start now one large sideways move where we could see rallies towards 1,000 to the upside," Locke said, adding the index could rally to 1,100.

Locke predicts the index to move into a consolidation phase in the first quarter of 2009, possibly extending into the second quarter.

The S&P will then experience another large wave down into 2010, or maybe ending in the spring of 2011, Locke told CNBC.

Locke also forecast gold's bull run to last into 2010 or 2011.

"We maybe do some mopping up or some working sideways into February/March next year, but from then on I would expect to see new bull-market highs going up to the end of 2009 into 2010, well above the 1,040 level," he said.

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