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E-mailBull Market Extended to Six Months By Matt McCall
Hordes of non-believers are out there raising questions about whether the global stock market rally will last. In theory, their doubts may be correct. However, as they argue with the bulls about why stocks should not be rallying, several major indices are up over 50 per cent from the March lows.
The chart of the S&P 500 puts the last year in perspective. The rally from March 2009 through to mid September 2009 has sent the index higher by nearly 60 per cent. Even with the amazing six-month rally, the index is not back to the early October 2008 high of 1167. It will take nearly another 100 points to get the S&P 500 back to the October high: a gain of approximately nine per cent. Technically the index is in a bull market trading range, as indicated by the two parallel upward sloping green lines. With the index currently in the middle of the trading range it is not unthinkable that the S&P 500 will continue its rally to the mid-1100s by the end of the year or sooner. On the flip side, support is at the 1000 area, where there is also support from November 2008. The combination of the two would make any pullback...
Excerpted from an article originally published in the Nov/Dec 09 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.
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