Why the S&P will top 1,600 -- and why it won't
Third time the charm?
The S&P 500’s first failed shot at 1600 occurred at the turn of the century. The index was on a steady climb higher throughout the 1990s, but peaked at 1520.77 on September 1, 2000 before rolling back to the 700s in 2002. It peaked again in October 2007, this time coming even closer (1565.15) to the elusive 1600 mark before unraveling to the March ’09 lows. Who can forget the “Devil’s Low” of 666 intraday? And now we’re back for a third try. The index is within 1.1% of its all-time high from 2007 and it seems unlikely anything will prevent it from hitting a fresh record close in the very near future. However, will it break out above 1600 and into a new, never-before-seen range? Here are five reasons it will — and five it won't.
(Source: ConvergEx)
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