I was holding these charts until the weekend's update, but they seem more timely today. First, the great South Sea Bubble of early 1700s which engulfed the British Empire at the time, followed by our own bull market mania, with one snapshot (DJIA) going back 18 months, while the other snapshot (Nasdaq 100) going back 15 years.
Question #1: Will these end up being all the same chart?
Question #2: If so, what will next 18 months look like?
The South Sea Company 1719-1721
US Market Indexes
Market Update
The weakness predicted in our pattern recognition analysis is starting to unfold as it should. No surprises here. Expect lower lows and lower retracement highs, but keep in mind those retracements can come shooting out of nowhere. Make two dollars, give one back, then make two and five back one again. That's the game we are in.
TRADING POSITIONS
