The Dow Jones Industrial Average has just hit a new milestone: DJIA 15,000! The move is on the heels of a weak earnings season, as far as revenue growth, but a better-than-expected unemployment report. Usually market technicians say that there is nothing magical about a new “thousand” point mark. That may not be the case this time.
At the start of the year we forecast a top price on the DJIA of 14,590 based on our same methodology that came within about 1% of the DJIA peak or year-end in each of the prior three years. We need to update this target, but so far all we have said is “higher” than the original 14,590.
Another record is also being seen in the S&P 500 Index. That index has crossed above 1,600 for the first time ever this week. The current daily range on the DJIA is 14,831.58 to 15,006.30, with a 173-point DJIA gain. The S&P 500 Index is up 20 points, and its new daily range is 1,597.60 to 1,618.40.
Hopefully this rally is not being missed out by the public. As we said in our 2013 primer for Sell in May and Go Away, maybe the bulls only cared about a strong ISM projection for 2013 and a surprise in consumer confidence report. Now they have a better-than-expected jobs report to add fuel to the bull market too. What more can be said in a major bull market?