• 20 hours Australian Billionaire To Invest In $88 Million Struggling Solar Project
  • 2 days Twitter-Shaming: The Biggest Threat To Any Business
  • 2 days Canada Looks To Become A Major Source For Critical Minerals
  • 2 days Hedge Funds Are Piling Into This Key Commodity
  • 4 days Trade Deal Not Likely Before Christmas 2020
  • 4 days America's $16 Trillion Debt Bubble Is About To Burst
  • 5 days Black Friday Breaks Online Shopping Records
  • 5 days Tesla's Biggest Competitor Is Hiding In Plain Sight
  • 6 days Are Celebrities Good Or Bad For Cannabis Stocks?
  • 7 days Venezuela’s Crisis Continues As Maduro Spends $5 Billion On Oil Deals
  • 8 days Elon Musk Claims 250,000 Orders For Cybertruck
  • 9 days How To Survive Thanksgiving Politics With Cannabis Gravy
  • 10 days The Fragility Of Monetary Policy
  • 11 days 5 Oligopoly Stock Picks For Your 2020 Portfolio
  • 11 days $7 Trillion In Unfunded U.S. Pensions As Domestic Debt Hits A Record High
  • 12 days Retail Is Alive And Well, But Only For The Rich
  • 12 days New Tech Could Unchain The Solar Revolution
  • 12 days China's Boldest Move Yet To Ditch The U.S. Dollar
  • 13 days 5 Stocks That Surpassed Earnings Expectations
  • 14 days Male Stress Increases With Female Earnings
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

The State of the Trend

Can the combined efforts of Bernanke and Yellen match and exceed the records set during The Maestro's tenure? A YES answer, on a per point, rather than a per % gain basis, seems more likely by the day.

Consider this. At the end of last week, the '09 - '13 rally exceeded the '97 - 2000 rally in 90% of the time:

S&P500 Monthly Chart
Larger Image

The chart above also shows that the SPX advanced 1336 points from October '87 to March 2000. At the current rate of advance, the index could reach this target during the first half of 2014.

But let's not get ahead of ourselves and turn our attention back to the chart we posted last week. Currently, the SPX continues on target to match the 2011 - 2013 rally, which marked the beginning of QE III. That target is 1900, and if the index remains within the channel, it should be reached by the end of the year:

S&P500 Daily Chart
Larger Image

The flip side of this comparison with historical patterns is that once this rally runs its course, investors should expect a 50% + haircut. But that will be the topic for another day.

In the meantime, the trend for the major indices (DJIA, SPX, NDX) is up in all three time frames (daily, weekly and monthly).

On Thursday and Friday gold managed to pull back within the triangle, keeping hope alive, but still remains confined within three downsloping channels:

Gold Weekly Chart
Larger Image

Silver couldn't muster much of a rebound and is targeting the '13 lows:

Silver Weekly Chart
Larger Image


Back to homepage

Leave a comment

Leave a comment