SPDR S&P 500 ETF Trust Bulls Will Party To 1999
It seems like a lifetime ago when the markets were in a state of panic and despair. We all remember the historic market crash of 2008, when bulls of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) were running for the hills and no one wanted to go long again. After weeks and months of red on the ticker, the markets, and S&P 500 in particular found a low of 666.79 in March 2009 (which Nick called perfectly by the way). Since that low was put in the markets have been on a steady rise higher.
The S&P 500 had such a tremendous climb, that it managed to gain an astonishing 105% (704 points) in just 3 years! That is pretty incredible for any individual stock to accomplish such a feat, but for an index to do that, is almost unheard of. After the bulls of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) were up triple digits in percentage terms, that is when the S&P 500 suffered a viscous and much needed correction; declining 21.5% (296 points) from 1370.58 to a low of 1074.77 on October 4, 2011.
Since that October low the S&P 500 has been back on the steady path higher. It blew past the October 2007 high of 1576.09 and seems to be making new all time highs on a daily basis. The S&P 500 seems to have the 2000 level in its cross hairs. In fact if the market keeps climbing to 2000.37 to be exact, it will be up 200% from the lows in March 2009. What I find interesting is that the S&P 500 is nearing the second century of gains in percentage terms. If this feat is attained, we might be in store for a much needed correction, kind of like the one we received in the summer of 2011. With that being said, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) bulls appear ready to party all the way to 1999.
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The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.