Another 2010 Similarity
- Posted by TheArmoTrader
- on March 12th, 2012
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 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.
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.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
- No, Government Spending Is Not Exploding
- Now THIS Is Resistance
- Stocks Keep On Trucking
- Rooting For A Choppy January
- Is Gold About To Move Higher?
- Predictions for 2014
- The Best & Worst Performing Industries of 2013
- The 2013 Chart Of The Year
- Will 2014 Mark the Return of Market Volatility?
- A Bearish Pattern For Bitcoin?
- This Chart Nearly Disproves The Myth Surrounding Unemployment Insurance
- A Modest Proposal For The Minimum Wage Debate
- What Exactly Is Economic Growth?
- Bonds Are Hanging On For Dear Life
- Should Bill Ackman Buy Back Into JCPenney?