Market “blow off”?

Has the S&P 500 gone loco? Or is it behaving normally?

Is the Nasdaq parabolic? Or is it trading in an orderly fashion?

Many strategists are characterizing the current advance as a “blow-off” move. But on what evidence? The four charts below portray a normal bull market. Perhaps yours truly is the real lunatic. What am I missing?

Chart 1. Is 12% annualized growth a “blow-off” reading?

Chart 2. Is 16% annualized growth a “blow-off” reading?

Chart 3. Room to run per 4-year cycle

Chart 4. Current rally not abnormal

 

 

 

 

By | 2017-10-31T11:11:27+00:00 October 31st, 2017|Categories: Market Strategy Report|0 Comments

About the Author:

Mark Ungewitter is a Senior Vice President & Investment Officer at Charter Trust Company. He was formerly Director of Portfolio Management at Investors Bank and Trust in Boston, Massachusetts. He holds an M.S. from Bentley University and a B.S. from Massachusetts College of Liberal Arts. He is a member of the American Association of Professional Technical Analysts.

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