Written by Rick Ackerman, Rick’s Picks
Unlike the Dow Industrials, the Nasdaq 100 and the S&P 500, the NY Composite Index has yet to hit a new record high. It is now hitting against resistance which is a trend line extending back ten years.
Please share this article – Go to very top of page, right hand side, for social media buttons.
The chart below shows the New York Composite Index going back to the start of the bull market in 2009. It is from our friend Peter Eliades, editor of Stockmarket Cycles, who notes that the high achieved on July 5 precisely reached a trendline that has held important implications for the aging bull throughout its history. The two red circles represent the trendline’s anchor points which, in Peter’s word, ‘mystically’ define the line’s slope. They occurred, respectively, at the intraday lows of August 18, 2017, and June 28, 2018.
As of the market close July 10, the NYSE Composite has remained below the intraday high of July 5 (13,238.76). The high point since then is 13,213.32 at 10 am yesterday (July 10).
Targets Well Above
However, a decisive move past the trendline would greatly increase the odds of this happening. Like Rick’s Picks, Peter has unfulfilled targets well above these levels in the S&Ps. His lie in the range 3200-3400, ours at 3095. The S&P cash is currently trading for around 2993. As long as these targets remain viable, and regardless of whether stocks weaken over the near term, there is little reason to think they will not eventually be achieved.
.
