After its all-time high in May of last year, the S&P 500 essentially went range-bound for 13 months with a series of lower highs around the 2,100 level. While there were numerous attempts to break through to the upside, bulls just couldn’t push the market up through that downtrend, and failed rallies were followed with steep selling. On June 8th, though, there looked to finally be some light at the end of the tunnel when the S&P 500 closed at 2,119 and above its prior lower high of 2,102. While all-time highs were still more than 10 points away, there was finally some optimism regarding a break-out.
So what happened after that June 8th higher high in the S&P 500? Well, not much. Below we show an intraday chart of the S&P 500 since the start of June. From that June 8th peak, the S&P 500 pulled back about 3% and rallied back but peaked out on June 23rd just ahead of the Brexit vote. Then, the post-Brexit sell-off quickly knocked about 5% off the S&P 500, and while equities quickly snapped back, through Friday’s close the rally has once again fallen short of the prior peak.