This is the chart from August 24th:
I made a new one but, since it's monthly, you can't see any difference so let's just use the one I put up the last time I called it "Toppy Tuesday (Again) – S&P 500 Tests 4,500 (Again)." Yes, we were higher a month ago – closing just over 4,350 yesterday and we're clearly hitting strong resistance at that 4,500 line that, so far, has not proven to be futile.
Last month, I warned:
An endless series of low-volume rallies is not enough to get you over a major level on the S&P 500 so, once again, we are being rejected at the 4,500 level. EVEN IF there were no stimulus and this were an honest 28% increase in earnings – we are still 20% too high at 4,500. This is not sustainable – especially if the Government isn't going to throw in another few Trillion Dollars to keep things humming next year.
As you can see, it took the S&P 4 years to get from 2,000 to 3,000 (up 50%) and that 1,000 point rally had two 500-point pullbacks along the way. This is our first attempt at 4,500, less than 2 years after crossing 3,000 and that's a 1,500-point rally and the pullback we'll be looking for is 3,750 at some point, which is only down 16.66% – so not too big a deal if it happens (and we hold it).
Meanwhile, we are still ignorning the virus, aren't we? How many Americans were infected in the past 28 days? Think of a big number…. How about 4.25M? 45,822 Americans died of Covid in the month we marked the 20th anniversary of the day 2,996 Americans died of terrorism. We declared war on Terrorism – we're "learning to live" with Covid…
There is something very, very wrong with us that we're not even TRYING to stop Covid in the US. Perhaps it's a symptom of the virus that does something to your…
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