The 2013 Chart Of The Year

There has been a couple of posts over the previous few weeks that have highlighted the “charts/graphs of the year”. There are a lot of noteworthy/good charts in there, but I think there is one chart – the true 2013 chart of the year- that’s missing.

So without further ado, here is The 2013 Chart Of The Year.

$SPX Quarterly Chart

I think the S&P 500 quarterly chart is this year’s chart of the year. Why? Because of the major breakout that occurred this year. There’s actually not much to say. As most of us know, the S&P 500 had been in a range from the late 1990s to 2012 (of about 700-1550 – thus prompting the “decade of no returns” saying, which by the way, is false). However, in the 1st quarter of this year, we broke to new all-time highs and went higher. But what was important is that we held higher. We didn’t sell back into the range.

This is important because it shows that the breakout was not “fake” and that we might be at the beginning of a new bull market. It kind of feels silly to say that, given that the S&P 500 is more than 100% above it’s March 2009 low, however, bull markets last a long time (see 2nd chart below).

[Yes, we can sell back into the range in 2014, but so far, nothing is showing technically that gives me any indication that will happen. Closing the year at highs is also very important]

SPX Quarterly

 

Michael Hartnett of BofA Merrill Lynch actually pointed this “breakout” out in BI’s Charts of the year as well. He used the analog form for the Dow Jones Industrial Average, which shows why the breakout is so important. It leads to long bull markets.

 

Tags: $SPX $SPY $DJIA $DIA $IWM $SSO $ES_F 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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