Let’s take a look at the S&P 500 from the beginning of the housing/financial fiasco in 2007 – 2008 and the following recovery; albeit Central Bank driven, numbers are numbers.
What has come to be known as The Great Recession, technically occurred from October 8th, 2007 to March 2nd, 2009. The S&P 500 dropped -57.69% in that time period.
Annotated chart below.
You can see in the chart below that from the low of 666.79, the S&P made a move up of +198.65% to reach an all time high of 1991.39 on July 21st, 2014.
Now, let’s look closer and see what has occurred during that nearly 200% move up. In the annotated chart below, I’ve noted 12 times the S&P 500 has pulled back at least -4% or more.Â What I find interesting is the last 3 pullbacks were -4.80%, -4.27% &- 4.37%, respectively. This tells me the “dip-buyers” are still expecting more upside movement.
This was originally posted on See It Market