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If the S&P 500 closes above 1,221.13 today, which looks very likely, that will mean that the index has been in a 2% trading range for 26 straight trading days. Since July 12, the S&P has closed as high as 1245.04, and as low as 1221.13. The rest of the time, the index has bounced between those bands (I’m only going by daily closes).

The market hasn’t been in a trading range this narrow for nearly 10 years. The S&P was caught in a range trading in October 1995, which was just a brief pause during its rally.

Perhaps the longest trading range in modern market history was in 1963. For 62 straight sessions, between April 15 and July 16, the S&P never closed above 71 or below 69. Although it’s hard to picture a market more dull than this one.

Posted by edelfenbein at August 16, 2005 1:00 PM