The S&P500s fifth gain in a row -the first repeat since January 2010, and only the fifth time since 1950- is creating anticipations of its closing above 1500. Though that goal is less than 10 points above todays close, the S&P500 has reached those levels only a few times. Further, all those closes happened almost immediately before the market collapses of 2000 and 2007.
Our diagram showing these days reveals prices declining almost in lockstep with daily gains; this makes a strong case, that in the past at least, for caution rather than exuberance when the S&P500 is above 1500.
Yet an optimistic interpretation is that this index, now just .5 percent below the 1500 threshold, held that territory more often in 2007 than in its previous, shorter stay just before the 2000 top.
DJIA .46 percent
NASDAQ .27 percent
S&P500 .44 percent
