Stock Market New Interim High – Signs of Exhaustion?

By: PhilStockWorld

Courtesy of Doug Short. Like yesterday, the S&P 500 fell at the open and hit its intraday low, off 0.32%, in the first 15 minutes of trading. The index zigzagged to a modest mid-afternoon intraday high, up 0.11%, before falling back into the red. The final hour of trading was a game of tag with the opening price. The index closed essentially flat, but in fact it set a new interim high, 0.02% above the previous interim high set yesterday.

Here is a 5-minute chart of today’s action.

What’s to make of this market? Here is a daily chart of SPY, the S&P 500′s ETF kissing cousin. Note the callout of the last five sessions, and check the vanishing volume. Symptoms of exhaustion?

The S&P 500 is now up 3.26% for 2013 and at a new interim high.

From a longer-term perspective, the index is 117.7% above the March 2009 closing low and 5.9% below the nominal all-time high of October 2007.

For a better sense of how these declines figure into a larger historical context, here’s a long-term view of secular bull and bear markets in the S&P Composite since 1871.

- Phil

www.philstockworld.com

Philip R. Davis is a founder of Phil's Stock World (www.philstockworld.com), a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders. Mr. Davis is a serial entrepreneur, having founded software company Accu-Title, a real estate title insurance software solution, and is also the President of the Delphi Consulting Corp., an M&A consulting firm that helps large and small companies obtain funding and close deals. He was also the founder of Accu-Search, a property data corporation that was sold to DataTrace in 2004 and Personality Plus, a precursor to eHarmony.com. Phil was a former editor of a UMass/Amherst humor magazine and it shows in his writing -- which is filled with colorful commentary along with very specific ideas on stock option purchases (Phil rarely holds actual stocks). Visit: Phil's Stock World (www.philstockworld.com)

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