(10/31/15)
The S&P 500 gained 8.3% in October which was the 6th largest
gain for October going back to 1900 for the S&P. In addition the large
gain in October has allowed the S&P 500 to be up 1% for the
year.
Furthermore as I have mentioned before since the late 1800's
each year that has ended in a "5" was accompanied by a positive return
in the S&P. The last time there wasn't a positive return was in
1875. Thus it will be interesting to see if they keep the market propped
up the next two months.
Meanwhile a long term historical chart of the S&P Composite
based in Real Dollars shows it remains near the top of its upward channel
(red line). Historically significant corrections have eventually followed
when the S&P Composite has risen above its upward channel (points A).
This doesn't mean the S&P 500 can't go higher in the near term but for the
longer term I still have serious concerns.
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