Charts of the Week: Friday, July 13, 2012

In 2004 George Bush was running against John Kerry and John Edwards, and the stock market spent the first 8 months worried about the outcome to the environment for Corporate America.  In August, and then especially in November, the outcome looked more business friendly, and the last quarter of the year rewarded growth investors.  As we look for rhymes of this year to previous years, just maybe 2004 might hold some clues.

These rhymes never work out perfectly, but...if this one did, it would mean this correction would take the S&P 500 eventually down to the 1225 to 1250 zone...

...and just maybe...we would see our valuable Psychology Composite (that was negative P5 in February and March) fully correct to a bullish P2.

Don Hays

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