Was that the low on Monday, August 8 when the S&P 500 closed at 1119.46? I think so. I base this on the Da Vinci Code. When the S&P 500 bounced off its intra-day low of 666 on March 6, 2009, I knew that was the low. On March 16, I wrote: “We’ve been to Hades and back. The S&P 500 bottomed last week on March 6 at an intraday low of 666. This is a number commonly associated with the Devil. The market soared from Tuesday’s low to close up 13.6% last week at 756.55. … The latest relief rally was sparked by lots of good news for a refreshing change, which I believe may have some staying power.” On April 7, I wrote: “I think THE low for the S&P 500 was made on March 6 at 666.”
So what is it about Monday’s close that’s bringing out the Tom Hanks symbolist in me again? The S&P 500 dropped 6.66% on that day! Yesterday morning, my friend Don Hayes, a triple-A rated technician, observed that the S&P 500 and the Nasdaq both had fallen to the top of last year’s panic ranges. He suggested that they might both find support at those levels and rebound. Sure enough, the S&P 500 rose 4.74% and the Nasdaq jumped 5.29% yesterday.