** The 'Megaphone of Death' **
I went a time-frame lower into 1W and found something I wanted to share with you. S&P500 recovered slowly after the 1987 Black Monday crash and before the aggressive Bull Phase of the late 1990s, it had a turbulent period within a Megaphone pattern in the early 1990s. That volatile period resembles the price action since early 2018, which has formed the pattern I previously called 'Megaphone of Death'. The past two plus years have also marked a turbulent period for the markets (after an uninterrupted growth phase of 10 years since the subprime crisis) as the U.S. - China trade war and the COVID pandemic issued Lower Low corrections from the Higher Highs (thus creating the Megaphone).
** Will history repeat itself? **
As you see both Megaphones are fairly similar, their Highs and Lows match. Currently we are on the (g) leg. If history is repeated, the correction of these past few weeks should be over soon and the following quarters should see Higher Highs and Higher Lows.
What do you think? Are you a buyer or a seller on this one? Feel free to share your work and let me know in the comments section!
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earnings, if they are still something that investors consider in this ponzi market, will/should be adjusted shortly. in the old days, earning calls would now be out the window and instead of seeing people buying with glee at 60 or with Tesla at 1000 times earnings, the market would have properly priced this in.
so to think that "smart money" will drive this higher, is in my opinion, a classic ponzi.
there is a fool born every minute. and the phrase " it's different this time" has come home to roost many a time, and will come again
(it would be healthy if it'd crashto 50% lower, of course)