Will the S&P 500 hit new highs in 2013?

Market Pulse: October 23

This past week the December 2012 E-mini S&P 500 opened at 1423.50 and closed the week at 1424.00, hitting a weekly high of 1459.75, and low of 1416.50. You may have seen or heard that many Wall Street firms, including Goldman Sachs, are forecasting new highs in 2013 for the S&P 500. So where does the E-mini S&P need to go to do this? Well let’s take a trip back in time. First stop: March 2000 where the monthly high was 1574.25. This of course was before the dot com collapse. Now, moving forward in time to October 2007 we see a monthly high of 1586.75. This of course was before the incredible mortgage bubble burst collapsing this market once again. 

Technicals on the daily chart show a weak trending market with ADX at 18 and DI- over DI+. MACD is adding a bit of divergence from below the signal line and Stochastics are mid-range and dropping. Looking at the price action you clearly can see the range between 1460-1420. And check out Friday’s drop of 27½. Watch earnings this week, also FOMC meetings Tuesday and Wednesday, and U.S. GDP on Friday.

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