Friday the S&P 500 Emini Futures made a stunning recovery at our lowest Weekly Trading Zone as discussed in the Thursday night Partner's Meeting.
The Week Ahead In Emini Futures
Last week we discussed just how close we are to all time historic highs in the S&P 500. Friday's closing price of 1410.50 (inside a Weekly Trading Zone) puts us roughly 140 points away from the highest levels ever reached. Some would suggest that given the anemic economic conditions which currently exist world wide, something is a little off with this picture.
We wrote an article Trading The Golden Cross earlier this year. It stated that from a historical perspective markets do rally in Presidential election years. Over the past 112 years (28 election years) the Dow Jones Industrial Average (DJIA) has produced an average gain of 7.3%. Toss out 2008 when we were already in the midst of a recession and it jumps to 8.8%. Two-thirds of the periods were positive for the market, while election years with major losses were rare. Election years that showed double-digit gains outnumber those with double-digit losses by nearly 3:1 – and only one of those double-digit losses occurred after 1940.
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