A quick pattern I noticed was the 257% advance from 1994-1995 up to the 1999 had three rather sharp corrections in it, labeled 18%, 30% and 19% before one last 46% advance which lasted 48 weeks into the high at the peak in September 2000 where it proceeded to lose 56% of its value in the next 3 years.
The current pattern is rather large also with a 256% gain to the peak in March this year (2015) and there is a 16%, 23% and currently 20% correction that we just lived through. The big question - do we have another move higher to put in the top or is this enough here to signal the top is already in? Isn't that interesting that they are very similar?
The market's ability to absorb news and discount known future events, like Presidential elections, interest rates, tax rates, and tax law changes, is the power of the marketplace.
Whoever decides first gets the biggest prize.
What do you think?
Last point: Isn't it also interesting that we had a "technical 20% bear market in the S&P500" using this DXY adjustment?
10:19PM Sunday, September 20, 2015 - Glad to have found this very interesting pattern.