Comparing S&P500 price patterns to 2009 housing market downturn.
This is something I have followed for a few weeks now. I decided to see if there were any similarities in the movement of the market now as compared to the downturn in 2008/09. Not saying they are 100% correlated at all! But If you fiddle with the charts enough using a bit different lengths of time but still using 1 day candles, the hint of a repeating pattern does seem to appear. It has continued to follow rather close to what I forecast using the 09' chart.
If it does play out with a similar phycological trading theme as in 09',(although definitely not as volatile and with the huge % swings in 09') we could have more pain to come, but a rebound hopefully will soon follow. My current thoughts revolve around the timing of the Federal reserves expected interest rate increase, I think in about two weeks. That would seem to align with the bottom of the 09' chart. My guess is we see another 8% or so drop leading up to or a direct reaction afterwards to the interest rate hike.
I am not pretending to recommend anyone trade off of the info I am posting. I figured some may find this insightful and use it to his or her advantage once it is brought to their attention. Any constructive ideas or thoughts are welcome. Good luck trading.
If it does play out with a similar phycological trading theme as in 09',(although definitely not as volatile and with the huge % swings in 09') we could have more pain to come, but a rebound hopefully will soon follow. My current thoughts revolve around the timing of the Federal reserves expected interest rate increase, I think in about two weeks. That would seem to align with the bottom of the 09' chart. My guess is we see another 8% or so drop leading up to or a direct reaction afterwards to the interest rate hike.
I am not pretending to recommend anyone trade off of the info I am posting. I figured some may find this insightful and use it to his or her advantage once it is brought to their attention. Any constructive ideas or thoughts are welcome. Good luck trading.