Simply making a comparison to the time after WW1. We saw two major corrections, before a meteoric rise in the markets. We all know what happened next. The great depression. Now I am not saying we are about to experience potentially one of the worst bear markets since the great depression, I am simply saying that its possible and YOU should be factoring it into your thought process. You must understand that being a bear or bull is only relative to the timeframe in question. Professionals are realists and chartist. We let the charts tell us what could happen, and we use our analysis to determine our own probabilities on each scenario.
Remember, history rhymes..
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Well over 1 year ago, I made this post just to show the similarities in price structure and how we could see a blow off top again before we started to see the move down.
Back in the 1920's we pushed a 20% blow off top.
Now in the 2020's we pushed a 25% blow off top.
Remember, if we dont see a swift collapse in the markets, we will see it play out in time. Which means long drawn out ranging price action for years.
What will happen next?
No one knows. Alls we can attempt to do is assess all scenarios - and this is one of them - a big one.
@Taco0o0o, its the same chart on the left and right. Just different time frames. Just make sure you type SPCFD:SPX in the search. ( i used the line chart because back in the 20's the candle chart looks funky with all the gaps
Scary stuff. Im obviously not calling a time on when we officially top out, or if we ever are actually going to experience a multi year bear market. But no one can argue the fact that they dont look nearly IDENTICAL LOL!
Humans are creatures of habit, and the price action chart is simply a graphical representation of human emotions in the market.
We never learn from our mistakes LOL!
Those that can see this train coming will be able to side step it and wait. The bottom of this potential bear market are those opportunities of a life time. Especially if you were able to capitalize on the covid crash being able to properly manage all those profits and step out of the way, to properly re invest at a true bottom.