News. The S&P 500 is now 20% above its 200-day moving average for the first time since 1983, says host Melissa Lee. That last time that happened we had a nasty sell-off. According to Gary Kaminsky, former Neuberger big wig and future cable news star, the market has not been this much above its 200-day moving average since May of 1983. "It's just another indication that the fear to "not own" stocks is sometimes as great as the fear to own names for many portfolio managers, especially this time of year," said Kaminsky. "The market is way overbought short-term." (Source: CNBC)
News. The S&P 500 has climbed from 20 percent below the 200-day moving average to 20 percent above it only three times since 1928, according to a note from Bespoke Investment Group. Using this comparison, the index dropped one, three and six months later. After a year, it was up twice, Bespoke said in a note. “If the S&P 500 follows the historical script, the typical fourth quarter rally could face some stiff headwinds,” the research firm wrote. (Source: Bloomberg)
It looks like the gurus believe the market is going to pause and then will keep going up. Time will tell.
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