Does the 1970′s Dow 1000 = 2000′s SPX 1000 ?
Posted By Barry Ritholtz On November 6, 2008 @ 3:45 pm In Markets,Technical Analysis,Trading | Comments Disabled
With 15 minutes left in today’s trading, let’s take a quick technical look at the past month’s market action:
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SPX 30 Days
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My perspective: This 2 day pullback after the sharp 20% rally from the October 10th lows in the SPX is about a ~50% retracement of the inital rally, as well as the Election Day revisit to those highs. Bloomberg noted [2] that this was the worst two-day slump since 1987.
It appears that forays above the level 1,000 have twice brought out the sellers.
I wonder if SPX 1,000 will become the modern equivalent of the 1970s Dow 1,000 . . .
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[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2008/11/spx-30-day-116.png
[2] Bloomberg noted: http://www.bloomberg.com/apps/news?pid=20601087&sid=at9k_Q_qEKEM&
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