Economic Insights – October 2018

After breaking out to new highs at the end of August, the S&P 500 pulled back in early September and found support right at the old highs posted in January. After holding that level, the S&P 500 rallied back to make higher highs.  That’s a textbook example of a bullmarket trend.

While that was going on, the DJIA remained the only major US index to not have yet “taken out” its January high; and that had some technicians worried. However, that concern was soon nullified when the index closed out the week of September 22n.....