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  • Why The S&P 500 Could Hit 1,800 Before The Year's End 0 comments
    Oct 25, 2013 10:13 AM

    It's time to look at the charts again. The S&P 500 scored yet another record high of 1,759.33 on Tuesday and is now up over one percent from its mid-September high.

    I must admit: the S&P 500 looks pretty good on the chart, driven by bullish sentiment and a desire to reach higher. The breakout appears to be holding, so 1,800 looks reachable by the year's end. Of course, a lot will depend on whether shoppers spend in the upcoming holiday season and if the Federal Reserve starts tapering its bond buying.

    For now, as shown by the long-term yearly chart of the S&P 500 below, you'll notice the two plateaus highlighted by the horizontal blue line, which stretch from 1965 to 1980, when stocks did nothing, and from 2000 to the present. As shown on the chart, the S&P 500 staged an impressive breakout that resulted in a two-decade-long rally extending from 1980 to 2000, based on my technical analysis.

    Back in 1985, the S&P 500 was trading at a mere 200 points. We are up nearly eight-fold since.

    Now, is the S&P 500 headed for another extended breakout like the one it experienced more than 30 years ago? It could definitely happen, that is, if all the stars are aligned.

    Read More : Why The S&P 500 Could Hit 1,800 Before The Year's End

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