A Psychological Barrier

11,722 is a number that the stock market has only seen once as a closing number and that was back in January of 2000. We have come close in recent days but can not seem to muster the strength to get past it. One begins to wonder if this barrier is nothing but a psychological one.

Since 2000 we have seen our world change before our eyes.

We saw a weakening economy in 2000. The tech bubble burst in 2000-2001. Scandals plague top companies like Worldcom, Enron, and Tyco. The change in how business report to their share holders.

Then 9/11.

We faced a recession on top of the terrorist attacks. Republicans swiftly passed across the board income tax cuts, elimination of the marriage tax penalty, and a phase out of the estate tax. We saw unemployment rates reach levels that hadn’t been seen in decades. Government spending at unprecedented levels. Oil prices, and by default gas prices, at all time highs here at home.

All of this has happened in just 6 short years. America did not fall but we did take a step back. Our economy has gained its momentum back. Now we are growing again but the market seems stalled at the precipice…do we take that next step?

America is resilient. Our markets are strong. We are back.

But can we over come the mental barrier and bust through 11,722?

I think we will find out by the end of the month…if not the end of the week.

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