Take a look at these two charts. They are both of the S&P 500 Index (SPX), they both span roughly the exact same time period, from the start of the year to mid April. But only one of them shows the current market. Which one is it?
And what time period is the other one showing?
Hey, no cheating!
Take a careful look at both and notice the uncanny similarities. They both top in early January and then trend down until the inflection point in early March. And then there’s a more or less orderly march upwards:
Have you made up your mind? Give up?
The bottom one is showing the current market. That was the easy one. What about the other?
The first chart is from 2003, showing the bear market in its last throes. Of course, as you know, from then on, the S&P 500 continued to climb higher and higher. Similar to today’s market, the technical pattern appeared to be a rising wedge. But this only threw off the bears even more as they waited and waited for the eventual pullback that never really came (well, until after 6 years that is ).
Honestly I have no idea what significance this has, if any, for the market right now but I’ve never seen this much synchronicity between two exact time periods. What do you think?
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