Where’s the Stock Market New All-Time High?

By: PhilStockWorld

Courtesy of Doug Short: Once again the S&P 500 spent a good part of the day slightly above its all-time closing high of January 15th, and once again it disappointed hopeful market watchers eager for that new high. The index opened in the green, sold into the shallow red, and then rallied to its 0.41% intraday high on the better-than-expected new home sales. It then lost traction and sold off to its -0.24% mid-afternoon intraday low. Ninety minutes later the index closed essentially at the flatline (at three decimal places was a gain of 0.002%).

The yield on the 10-year note closed at 2.67%, down 3 bps from yesterday’s close. The interim high was 3.04% at the end of 2013, which says something about the bond market’s view of equities.

Here is a snapshot of the week so far.

Today’s volume was 3% above its 50-day moving average. As the dashed line illustrates on a daily chart, resistance in the vicinity of today’s trade actually dates back to the end of last year.

Here is an updated look at the S&P 500 drawdowns (percent off highs) since the market bottom on March 9, 2009. I’ve highlighted the declines in excess of 5%.

The S&P 500 is now down 0.17% for 2014.

Here is a longer perspective, starting with the all-time high prior to the Great Recession.

For a better sense of how these declines figure into a larger historical context, here’s a long-term view of secular bull and bear markets in the S&P Composite since 1871.

- Phil

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

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