Rally Like It’s 2009October 24, 2013
We perform a variety of calculations to understand the often imperceptible changes in the underlying structure of the stock market. One calculation we make is to measure the percent of stocks making a new 200-day high. Historically this metric gets the most extended during the first move off a major low–like in September 2009. Often, peaks in this metric (readings over 15%) are associated with intermediate peaks in stocks. On Monday, 18% of the MSCI World index (over 1,600 companies total) made new 200 day highs, just short of the 19% reading on September 18, 2009–after stocks were up 70% from March 2009 lows.