SPX Closes at Five-Year Highs

The business channels and newspapers are plastering the headline everywhere this weekend; S&P 500 Closes at 5-Year High. The SPX moves above the 9/14/12 closing high at 1465.77.  The SPX closes at 1466.47 now matching closing levels last seen at the start of 2008, almost exactly five years ago.  That year started with a 21 point drop in the SPX as the markets were rolling over off the October 2007 market top.  On 12/31/07, the SPX closed at 1468.36 so watch this number come Monday.

The Dow Industrials (INDU) produced a five-year highs in September 2012 but is under those levels currently, ditto the Nasdaq Composite (COMPQ). The RUT punched out a five-year high like the SPX and sits at 879. This is the small cap strength that occurs seasonality-wise this time of year. Keystone's 80/20 rule says 8's lead to 2's so if the RUT closes above 880, then 920 would be on the table. Thus, pay attention to the RUT on Monday; if a bull you want to see 880 and higher, if a bear you want to see a spankdown from 880 asap.

Before the trumpets play too loudly, and the confetti grows knee-deep, keep in mind the SPX is not above the two recent intraday highs; 1474.51 on 9/14/12 and 1470.96 on 10/5/12.  The 1474.51 is the ultimate high for the SPX during the last five years; that would send the SPX into the 1500's more than likely if that was to give way. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.