While 2000 and 2008 were major events in themselves, with the rally into the 2007 high being a bubble and the drop from it being a crash, the two events essentially come together to make a big range. I call these "Camel crashes" because of the two humps they create.
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Camel crashes are notable. There has to be two significant crashes within a short timespan of each other to make these patterns. When we're talking about 50% drops in an index, we're talking about serious events. Therefore it's notable that the 1915 - 1920 crash range looks very similar to the 2000 - 2008 crash range. In the extremely rare events where an index crashed 50% twice in the same decade - the moves look notably similar. Despite all the reasons they should not look similar, these crash ranges look just the same (With a little spike out variance).
Both highs would be made on a 161. As with the previous crash range.
Of course we all know that after 2008 the market went into an aggressive 10 yr rally. It's a really interesting point to note that after these two weirdly similar 50% crashes the market entered into a weirdly similar strong decade of rallying. This is more noteworthy when you consider after the 1920 crash there was no FED in the market and the government promoted deflationary measures. They did the exact opposite of what the FED did in 2009 onward. You can look this up. You'll probably find it under "The crash that cured itself".
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See first:
Camel crashes are notable. There has to be two significant crashes within a short timespan of each other to make these patterns. When we're talking about 50% drops in an index, we're talking about serious events. Therefore it's notable that the 1915 - 1920 crash range looks very similar to the 2000 - 2008 crash range. In the extremely rare events where an index crashed 50% twice in the same decade - the moves look notably similar. Despite all the reasons they should not look similar, these crash ranges look just the same (With a little spike out variance).
Both highs would be made on a 161. As with the previous crash range.
Of course we all know that after 2008 the market went into an aggressive 10 yr rally. It's a really interesting point to note that after these two weirdly similar 50% crashes the market entered into a weirdly similar strong decade of rallying. This is more noteworthy when you consider after the 1920 crash there was no FED in the market and the government promoted deflationary measures. They did the exact opposite of what the FED did in 2009 onward. You can look this up. You'll probably find it under "The crash that cured itself".
See Next:
