News that Citigroup would receive a cash infusion from the Middle East helped spark a stock-market rally Tuesday, as did a break in the price of oil.I read an analysis in Slate or somewhere* about the time that the Dow Jones Industrial Average passed 10,000 that it would stick there for a while. It had stayed at 100 and 1000 for inordinately long times, so powers of ten seemed rather sticky. Even though a lot of 'psychological' arguments about market movements are bunk, the idea appealed to me and I was fully prepared to watch that happen.
The Dow Jones Industrial Average rose 142.50, or 1.1%, to 12885.94. The S&P 500 added 13.80, or 1%, to 1421.02, and the Nasdaq Composite Index gained 33.77, or 1.3%, to 2574.76.
But, I am spectactularly prone to idées fixes. So, I've been expecting the Dow to relax back to 1E4 for 2 years now -- it was last within, oh, 216 points at open on October 17, 2005, and first on December 1, 2003, so it only spent 22 1/2 months there. The theory predicted it would be more like ten years. So, six years from now? Dow 10,000.
* -- actually, if you could find that? That'd be stellar.