Taking history as a mirror: US stocks may reach a record high at the end of August
Two attempts by the S & P 500 to break the closing record since February ended in failure last week, prompting some investors to worry that the market rally will lose momentum. On the other hand, historical data suggest that market bulls should not admit defeat too soon. < p > < p > the S & P 500 briefly exceeded its highest closing level on February 19 last week, and its final closing point was less than 1% from that level. The index set a new record on Thursday, followed by a correction, and closed just 0.4% below its historical close on Friday. Some analysts worry that resistance to near record highs may be difficult to overcome after the index has rebounded more than 50% from the market low triggered by the new outbreak. The record closing and intraday record of the S & P 500 index were 3386.15 and 3393.52, respectively. As of Monday’s close, the index closed at 3381.99, up 0.27%, reaching an intraday high of 3387.59. Sam Stovall, CFRA’s chief investment strategist, found that as long as the S & P 500 closed within 1% of its previous high, the historic high milestone would break within an average of eight natural days. The longest waiting time for new highs was 21 days after the 2000-2002 bear market, then 20 days after the 2007-2009 bear market, while all other historical highs were broken within 8 days.
