All Four Major Indexes At New Highs
I'm not really in the office this week, but we had quite a few questions about the simultaneous new highs in all of the major indexes on Monday. Buyers are following through on their normal pre-holiday binge, and managed to close the S&P 500, Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 at all-time highs on the same day.
The last time this occurred was in December 1999, prior to a big short-term drop, and ultimately a bear market. Prior instances weren't so dramatic, but for the broader market, it actually did lead to more weakness than strength across most short- to medium-term time frames. Below we show future returns for each of the four major indexes following these signals (using only the first signal in at least three months).