Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
We are starting to see some very extreme readings on our monthly and weekly index charts since there has been no correction this year. I posted below first the monthly chart of the S&P 500 going back 15 years showing bollinger bands – rarely do we get above the upper one, and never have we been this far above. Then below that I posted (with 4 charts of 4 years each) the weekly data and you can see we are at a rare time we are above the weekly bollinger band as well. This non stop rally is getting very historical.
Monthly – we’ve never been this far above the upper bollinger band in the S&P 500 and that includes the 1999 stock market bubble (which more more NASDAQ focused of course!) Only thing similar is 2006-2007 where there were a few months we skimmed just over the upper bollinger but nothing to the current degree in May 2013.
Weekly – this level of extreme does happen every few years but rare.
Mid 2009 – Mid 2013
Mid 2005 – Mid 2009
Mid 2001 – Mid 2005
Mid 1997 – Mid 2001
For reference I did a 15 year monthly chart for Japan’s Nikkei which is in its own universe right now – so yes it can get more crazy I suppose.
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