Profits List S&P 500 Near February Highs
nder the Dow Theory, only the closing levels of the Dow Industrials and Dow Transports are relevant, and formerly significant lows no longer represent potential bear-market trigger points once both averages reach new rally highs. Still, it would be encouraging to see the S&P 500 Index move above its February high â€” and discouraging to see a breakdown below the lows reached in March.
After bouncing on strong March-quarter results, the S&P 500 Index is within 1% of its Feb. 18 closing high of 1,343.01. With a close above that level, portfolio managers may feel increased pressure to boost their stock-market exposure â€” and avoid being left behind. For now, our buy lists have 8.5% to 12% in a short-term bond fund.