On Aug. 21, the Standard & Poor’s 500-stock index closed at a 10-month high of 1,026.13. The move purged Monday’s 2% drop from the collective consciousness and put the S&P 2% on the week.
The new high confirms what I wrote yesterday – that markets are poised to head higher, not lower, at least in the near term. InvesTech Research’s Jim Stack, citing historical precedent, says he expects another 10-12% from the market. He points to the average gain from the market in the sixth to tenth month following a market bottom. That would suggest the S&P 500 could close out the year around 1120, or up 65% from its low on March 9.
If you’re long the market, are you holding on for more gains? Is anyone buying?