(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.