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(9/2/17)
At this point it seems like there is nothing that is going to
rattle the market. North Korea tested a hydrogen bomb on Sunday, so the
way things have been going lately, that will probably be treated as a positive
for the market (being sarcastic) when it reopens on
Tuesday.
At any rate in terms of "Real Dollars" the S&P
remains well above the top of its longer term upward channel (red line).
As I have pointed out before, there have only been two other occurrences in
which the S&P has been well above the top of its upward channel. These
events occurred in the late 1990's and way back in the mid 1850's.
If the S&P were to rise up to the trend line connecting the
previous peaks of the mid 1850's and late 1990's, that would yield a value
around the 2700 level (purple line).
Finally notice the peaks of the late 1990's and mid 1850's were
followed by substantial corrections exceeding 60% as the S&P eventually
dropped back below its long term mean (green line).
Amateur Investors
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