Another 2010 Similarity

I’ve blogged about in the past how the market (post-Debt-ceiling ”Crisis”) has been playing out very similarly to the market of 2010-2011. Well, over the weekend I noticed something new that reminded me of the 2010-2011 rally as well. It’s pretty funny how history tends to “rhyme” with the present, especially in the Stock Market.

The Chart

The chart below is a daily chart of the S&P 500 ETF ($SPY) from about late 2010 to the present. As you can see, after a choppy summer, then a rally, we had a marginal breakout that was followed immediately by a “pullback”. Now that the pullback is done with, it looks like we are going to repeat something we saw in late 2010, which could mean this rally is far from over.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Now take a look at the daily chart from mid 2010 to mid 2011. Does something look familiar? We had a choppy, range-bound summer, followed by a rally. We had a marginal breakout into new highs which was immediately followed by a pullback. The pullback was bought and we went on to continue the rally for another 3 months.

Are we about to see the same action in the following 3 months? Sure looks like it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tags: $SPY, $SPX, $DJIA

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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