Tuesday, August 31, 2010

30 year S&P 500 average -- The return of the Search of the Day

I used to do a series called "search of the day" in which I took a search term someone used to arrive at this blog, put it in the headline and tried to provide them with the information or chart they were looking for. It was just a little public service for people searching the internet and a little experiment in search engine optimization.

But around the beginning of the year I removed the sitemeter from the blog. I'm not really sure why I did that, I musta been in a bad mood or something. Anyway, I put the sitemeter back on the other day in order to once again monitor the traffic flow at Trend & Value.

What I found is that I am still getting a large number (relative to total site traffic ) of hits from those old search-of-the-day posts. The problem is a lot of the charts are out of date, and some of the posts just weren't very good to begin with. So I am going to restart the experiment, but along the way try to add some value to the posts so regular readers don't get pissed off.

Today someone from Cincinnati arrived here via the following google query:

30 year S&P 500 average

And he got a post I wrote from way back on Groundhogs Day, 2009. The post had a 30 year candlestick chart of the S&P I got from stockcharts.

But the dude from Cincinnati may actually be looking for the average price of the index over the last 30 years. Either that or he is mistakenly using the word average when what he really means is index. But whatever, Here's a chart of the S&P 500 since 1950:

The Blue line is the monthly "typical price" (average of o/h/l/c). The black line is the 360 month (30 years) simple moving average of the typical price, currently at 699.98. Yeah, 700~ might be a good place to look for some support eventually.

Oh, and the yellow line represents the 360 month geometric mean. It's at 529.02. I include the geomean here because I'm starting to use that method of calculation a lot more for my longer-term price analysis.

I got the historical data from yahoo finance. You can download it for free and make your own charts if you're really bored.