The chart below highlight the 3 prior rallies I am referring to, along with the current rally. - The Rallies follows a sharp dip, we then see a remarkably steady and consistent rally, these are then followed by some topping action, and then a correction, these being of varying sizes, but include 2010s flash crash as one of them.
Below I have added a set of charts of each of these rallies. - As you can see they are remarkably similar in nature, furthermore there is a very close similarity between the amount of % gains and their duration. [Those of you who are in to the Fibonacci thing may notice how close the durations are in days to the Fib number 55]. - Below these charts I have added a chart showing the current rally. - If (and it is a big 'if') this was to continue to display similarity to these rallies, we may still have a couple more weeks of upside, with the rally approaching or making one final lunge close to 1400. - If it were to unfold something like that - well what happens next is anyone's guess?
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Nice observation Steven !
ReplyDeleteIt is worth noting, the trend-line connecting the start of this decline had been broken in the past month, however the resistance line which is currently under threat may be more significant as it connects a number of key highs.
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