Flat Friday Caps A Fine Week On The S&P

Includes: SPY
by: Doug Short

The S&P spent most of the day churning slightly in negative territory. In the last few minutes of the trading session, the index squeaked out a tiny gain of 0.04%. For the week, however, the gain was an impressive 3.78%.

The index is in the green year-to-date, up 2.18%, although it is 5.76% below the interim high of April 29.

From an intermediate perspective, the index is 90.0% above the March 2009 closing low and 17.9% below the nominal all-time high of October 2007.

Below are two charts of the index, with and without the 50 and 200-day moving averages.

Click for a larger image

Click for a larger image

For a better sense of how these declines figure into a larger historical context, here's a long-term view of secular bull and bear markets in the S&P Composite since 1871.

For a bit of international flavor, here's a chart series that includes an overlay of the S&P 500, the Dow Crash of 1929 and Great Depression, and the so-called L-shaped "recovery" of the Nikkei 225. I update these weekly.

These charts are not intended as a forecast, but rather as a way to study the current market in relation to historic market cycles.