Study of Drought of New Highs, from Russell Sears
What happens the year after a new closing high on the S&P if there has not been a record high close for at least a year?
Since 1950 there have only been 11 examples.
Despite what many will undoubtly say when S&P closes above 1527, it looks safe to get back into the water.
Date Close next year
2/14/95 482.55 31.58%
7/26/89 338.05 6.72%
1/21/85 175.23 18.33%
11/3/82 142.87 17.42%
7/17/80 121.44 8.90%
3/6/72 108.77 5.66%
5/4/67 94.32 5.18%
9/3/63 72.66 12.69%
1/27/61 61.24 11.74%
9/24/58 49.78 13.60%
3/11/54 26.69 31.62%