• Chartist Corner: Will We Be Flat This Time 16 Years From Now?

    by  • May 22, 2013 2:03 pm • Broad Market Analysis, Chartist Corner • 0 Comments

    Sure things look good and the bull is alive and well, but here is something that concerns me.

    The Russell 2000 (RUT) is up against the psychological area of 1,000.  It couldn’t close above it yesterday and looking like it’ll close beneath it again today.  So what you ask?  Let’s take a trip down memory lane.

    The S&P 400 MidCap (MID) first touched 1,000 in April 2011.  It didn’t fully clear this level until this past December.  That is nearly 20 months for those scoring at home.

    The Dow is even more amazing.  It first hit 1,000 in January 1966 and didn’t fully clear this area until late 1982.  In other words, it took more than 16 years!  Here’s a chart from Barry Ritholtz showing this timeframe.

    The good news is the S&P 500 hit 1,000 in 1998 and it didn’t mean anything.  Still, with the RUT up near this level and given its history as a potential rally buster, pay very close attention.



    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


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