Comparing the current top (below, circled in red) with the 1929 top (above) clearly shows just how bad things can actually get. If we are to experience a prolonged meltdown, it appears the indexes have the potential to fall a lot farther than anyone is even imagining.
Update: I added the Nasdaq Composite chart at the very top as [...]
Last night, as I was in the middle of my analysis, I pulled up two charts: Number of SPX stocks trading above their 50 day averages, and number of SPX stocks trading above their 200 day averages. What I found was confusing and unsettling: Neither chart showed breadth to be even close to a bottom.
Keep in mind [...]
There will soon be talk across the internets about a double bottom. Here is a primer on the elusive chart pattern.
As the Nasdaq has undercut previous lows, there is already talk of a double bottom. It is best to consult William O’Neil’s teachings on this chart pattern. According to WON, a double bottom will start by the [...]
The last 2 weeks saw the indexes challenge 5 year trendlines as established from the lows of 2002. It is interesting that the action of the last few months looks very similar to the action during the 2000-2002 Bear Market. Actually, as the Nasdaq is still well beneath its all-time highs, it has been in a [...]
