Stock Market Climbs to 10-Month High

Posted by: Ben Levisohn on August 21, 2009

On Aug. 21, the Standard & Poor’s 500-stock index closed at a 10-month high of 1,026.13. The move purged Monday’s 2% drop from the collective consciousness and put the S&P 500 up 2% on the week.

The new high confirms what I wrote yesterday – that markets are poised to head higher, not lower, at least in the near term. InvesTech Research’s Jim Stack, citing historical precedent, says he expects another 10-12% from the market. He points to the average gain from the market in the sixth to tenth month following a market bottom. That would suggest the S&P 500 could close out the year around 1120, or up 65% from its low on March 9.

If you’re long the market, are you holding on for more gains? Is anyone buying?

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About

Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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