Sector Investing

[ReturntoSender]

Amateur Investors Weekend Stock Market Analysis (4/19/14)

http://www.amateur-investor.net/Weekend_Market_Analysis_April_19_2014.htm

This week for a change of pace we are going to look at a chart of the Inflation Adjusted Monthly S&P Composite going back to the early 1870's. As you can see the historical trend has always been to the upside with the black line representing the exponential long term trend line.

Historically the S&P Composite has held support roughly 60% below the trend line as represented by the green line (points A) with the last occurrence in the early 1980's. Meanwhile resistance has usually occurred roughly 70% above the trend line as represented by the red line (points B) with the last occurrence in 2007. The only time the S&P Composite surged well above the red line was from 1999 into 2000. Currently the S&P Composite has risen back to the red line once again so the question is will it encounter significant resistance or will it blast through it?