On May 20, the S&P 500 fell below its 200-day moving average for the first time in 216 trading days.
For many, this was a complete surprise.
A look at some of the headlines from April 26, the day the markets peaked, shows how big:
- Bloomberg: “U.S. stocks cheapest since 1990 on analyst estimates;” “Biggest banks are back as JPMorgan, Citigroup turn corner on credit crisis.”
- “Wall Street Journal”: “Consumer mojo lifts profits.”
- Yahoo Tech Ticker: “S&P could hit 3,000 by 2020.”
But the ETF Profit Strategy Newsletter observed the following on April 28: “With various sentiment gauges having reached multi-year extremes and Investors Intelligence bullishness at 54% (the highest since December 2007), the potential exists that Monday’s high – which was only one point short of the 61.8% Fibonacci retracement at 1,220 – marked a significant market top.”