This Looks Familiar

0

What I see unfolding in stocks reminds me of how things unfolded in 2011.

1 spx 2011

Back in 2011 the yearly equity cycle peaked in May.
The following intermediate cycle low found support at the 200 day MA.
The ensuing daily cycle printed a lower daily cycle high.
That was followed by a close below the lower daily cycle band that lead to a crash.
Following the crash stocks printed a volatile final daily cycle that printed the yearly cycle low.

2 spx 2015

Currently we see that the yearly equity cycle peaked in May.
The following intermediate cycle low found support just below the 200 day MA.
The ensuing daily cycle printed a lower daily cycle high.
That was followed by a close below the lower daily cycle band that lead to a crash.
Stocks appear to have entered a period of volatility, which will likely result with stocks printing their yearly cycle low.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.