From the Top

Will the S&P 500 Stage a Repeat of Its Late 2010 Surge?

The SPX is mimicking the pattern of highs and lows created in the second half of 2010

by 11/29/2011 11:55 AM
Stocks quoted in this article:

I've noticed some interesting similarities in the timing of S&P 500 Index (SPX) highs and lows in the third and fourth quarters of 2010 and 2011.

  • August lows -- Market bottoms on August 27, 2010 and on August 8, 2011 (though these August lows were briefly taken out on October 3 and 4)
  • Late-October/early-November highs -- On November 5, 2010 and October 27, 2011
  • November lows -- The November 29, 2010 low was followed by a 15% rally into February 2011

Will something similar eventuate now that we have a tentative low in place on Nov. 25, 2011?

 Daily Chart of SPX since July 2010

(Note: For the key technical levels to watch going forward, be sure to read Todd Salamone's analysis of the support and resistance areas that are currently in play for the major market indexes.)


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