This guy’s a bear.
The S&P 500, in the past week, rose 18, or 1.4 percent to 1361, and it is now up 24 percent from its October low and nine points below its 2011 high. The Dow, up 1.2 percent for the week to 12,949 is in reach of 13,000, a key psychological level. It is also at the highest level since May, 2008.
“The market continues to work its way higher. We are knocking on the door of the April 29 recovery high. It feels like there are an awful lot of people calling for a correction—or at least a digestion—and I’m one of them,” said Sam Stovall, chief equity strategist at S&P Capital IQ.
Stovall said with history as a guide, when stocks rally, off a ‘baby bear’ correction, like the one that ended in October, they on average rebound by about 23 percent within six months. The current market rally is ahead of schedule, and stocks have made similar gains in just 4-1/2 months.