Stocks have been going nowhere for a while now.
In a morning briefing, the Wall Street Journal noted that the Dow has traded in a 7.7% range through 2015, the narrowest for this point of year since 1992.
The S&P 500 has also traded in a similarly tight range this year, and according to the NYSE’s Rich Barry this range is precisely what’s making some in the market nervous.
For others, this “consolidation” is evidence that this bull market is not over until, well, it’s over.
“Separately, traders are making note of the ‘narrow range’ that the S&P 500 has been locked into for 2015. So far, the S&P has been confined to roughly a 7% trading range. That is one of the tightest ranges in decades begging the question, ‘Is this action developing a giant market top – after a six-plus year Bull Run(??), or is it just a healthy consolidation move following the straight up-move, without one ‘correction’, since June 2012?’ We continue to select “B” – consolidation, and will continue to believe that until proven wrong… “
Stocks are trading in the red on Friday. On Wednesday, the Nasdaq reached an all-time closing high.