S&P In Interesting Technical Territory



(Source: “The Unsinkable Stock Market”, Michael Kahn, Barron’s Online, September 16)

The S&P is now in some interesting technical territory.  On Friday October 3, 2008, the S&P closed at 1099.  The following week was the worst panic selling of the entire bear market.  The S&P lost 259 points reaching an intraday low of 840 on Friday October 10.

The S&P closed today at 1065.  That’s the highest level since October 3, 2008 (not including yesterday).  1100 should represent significant resistance as a move above those levels erases much of the damage from the post Lehman panic.  Indeed, in my opinion, a decisive move above 1100 would force honest bears to stop calling this a bear market rally and recognize it as a genuine bull market – regardless of its substance and long term viability.

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