Is it true that history repeats itself? well, let's find out together. Today, I looked at historical chart data for the NDX, and here is what I have found.
This chart represents data from 1998 to 2001. Before the dot.com bubble, we had a solid uptrend for more than two years with minimal corrections along the way. Then, an Ascending Broadening Wedge, which we all know, is a bearish pattern, formed and a huge correction took place.
Now let's take a look at the current trend.
What you looking at is the current uptrend that we have had for more than two years now, and this chart seems identical to the one we had before the dot.com bust. Similarly, an Ascending Broadening Wedge is forming, and this could indicate the NDX is nearing the top. However, we do not know for sure if the top is near. But we have to rely on historical data to help us determine where is the next direction for the market.
Please, if you agree or disagree, share your thoughts. I would love to hear from you!
This chart represents data from 1998 to 2001. Before the dot.com bubble, we had a solid uptrend for more than two years with minimal corrections along the way. Then, an Ascending Broadening Wedge, which we all know, is a bearish pattern, formed and a huge correction took place.
Now let's take a look at the current trend.
What you looking at is the current uptrend that we have had for more than two years now, and this chart seems identical to the one we had before the dot.com bust. Similarly, an Ascending Broadening Wedge is forming, and this could indicate the NDX is nearing the top. However, we do not know for sure if the top is near. But we have to rely on historical data to help us determine where is the next direction for the market.
Please, if you agree or disagree, share your thoughts. I would love to hear from you!