E The S&P 500 Just Did What?

This week lets take a look at the SPX from a longer term two year time frame so as to give us a clue as to what could be on the horizon. 

The 2015 close was 2058. The high thus far is call it 2275. Over the last two years it comes out to a +10.5%. return. Now divide it by two and you get 5.25%  per year. Nothing wrong with that.

However, and this is just food for thought. Look what type of wild swings one had to endure to get that buy and hold return.  

Next up here is what I want you to really observe. While up 10.5% over the last two years take a look at what its done since the November Election lows. Yes, another beeline don't blink move right up that put on about 9.1%  

That is virtually all of the last two years worth of gains came in the last two month time frame. How crazy is that.

Now lets take a look back to the end of 2014 with this index. 

The point of this chart is to show you the year end action off the beginning of Dec. through year end 2014 and just like now, how overbought it was going into year end.

Now lets take a look at what occurred after the 1st of the year.

My point is, at the least expect a healthy pullback 1st of the year if we don't get one before hand. If you ever needed a reason to scale back some percentage of your holdings what I've just shown you should set it home as to a good reason why getting out while the getting is good for awhile isn't exactly a bad thing to consider with a portion of ones holdings.  

Getting back to the two year SPX chart for a moment,  Given the wicked gyrations over the last two years (par for the course in a mature bull market) it lends credence to being more of a swing trader long and short going forward for a bit.After all, as you've seen it really hasn't been a cake walk when all said and done the last two years, actually extremely volatile.

All of which leads me to a game plan one may want to consider going forward or at the least some food for personal thought is that of the power of $500 per week as a potential game plan in the short term.  

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