Excerpt from the Wall Street Journal quoting DataTrek’s Nick Colas:
…. “Following the September 2008 financial crisis, the market didn’t hit its bottom until a few months later, in March 2009. On March 6, the S&P 500 index hit what would be its lowest intraday level: 666 points.
Analysts such as Nicholas Colas, co-founder of DataTrek Research, have long been referring to this for years as “the Devil’s Low.” It was 57.7% below the S&P 500’s intraday pre-crisis high in October 2007. An equivalent drop today would bring the S&P 500 from its intraday high in February to 1,435. Currently the S&P is still well away from there, trading around 2,400 on Wednesday morning.
That bottom doesn’t have the same ring as “666.” But the digits do add up to 13.
The market might well avoid having to name that number at all, if Congress can act quickly, Mr. Colas said, noting that the 666 bottom came just after the 2009 U.S. stimulus bill was passed.
“If, and it’s a big if, D.C. can pass stimulus faster this time, then we might not end up at the crossroads making another deal with the devil,” he said”….
Read the full article here in the WSJ!