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Weekend Analysis by Amateur Investors
By: Amateur Investors | October 28, 2017

With only two trading days left in the month the S&P 500 is poised to have another positive month. In fact, it has basically gone straight upward the last 12 months except for March which was a breakeven month.



Meanwhile the S&P 500 is only 19 points away from the 2600 level which is at the upper Bollinger Band using a monthly time scale.



In terms of "Real Dollars" the S&P remains well above the top of its upward channel. The only other times the S&P has been further above the top of its upward channel was in the late 1990's and way back in the mid 1830's.



If we draw a trend line (purple line) connecting the peaks of the late 1990's and mid 1830's that leads to a value around the 2700 level (point A). Based on Friday's close the S&P is only 4% away from the 2700 level.



Finally, the last two times the S&P has been well above the top of its upward channel, significant corrections followed with an eventual reversion back below the mean (points B to C) as denoted by the green line. Currently the long term mean is just above the 1000 level.



http://www.amateur-investors.com/AII_Weekend_AnalysisOct_28_17.htm

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