Big day for the markets after an impressive speech for the Prez . . . Just a bit of perspective from that we're checking via the news.
Barron's: Merrill Lynch: S&P 2450 Here We Come!
CNBC: Dow skyrockets 300 points higher, breaks above 21000 as stocks hit all-time highs
Market Watch: S&P 500 books best monthly gain in a year
Now, thanks to our blog community . . . Here's another take FROM A KICK-ASS KANSAS CITY FINANCIAL INSIDER which offers a bit of a fact check . . .
In response to President Trump's warmly received speech to the nation last night, the major averages are once again soaring higher to new records.
Here's where it gets interesting:
If you look at the SP500 monthly chart, you will notice that this morning being the 1st day of March, we've already established a Monthly Gap. In the month of February, the SP500 high was 2371.54, and today's low (so far) is 2380.13, while we're currently sitting at approximately 2396 (+1.38%).
So we have a monthly gap established, big deal, right? Monthly gaps are probably somewhat common through the years, aren't they? Not exactly!
Once again, looking at the SP500 Monthly chart, you can go back 40 years (my data takes me to 1975-1976) and not find an open monthly gap which was established. And I'm not talking about a gap which was left open, only to be closed months later, I'm saying there was not one monthly gap established in the last 40 years, from the close of one month to the close of the following month. Not a single time.
Nothing is guaranteed, but unless something very rare is going to happen by the close of trading on March 31, we can say with some certainty that the SP500 will drop back to 2371.54, or below that level, sometime before April 1st.
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You decide . . .
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