Comparing The 2010 & 2011 Ranges

So far since the big sell-off in the summer, we have been stuck in a big range which we just barely broke out of a few trading days ago. Everyone has heard the phrase “History repeats”; well I like the phrase “History does not repeat itself, but it does rhyme.”  If you take a look back to Summer of 2010, when we had a similar range after a big sell-off (flash crash), you would start to notice many similarities.

  1. Big range in which it paid to buy the bottom, sell the top (until it did not of course)
  2. Volatility high
  3. “Fake breakdown” after the initial crash
  4. Breakout? (Yet to be seen if this was the breakout to lead us back into the bull market)
  5. Very high Bearish sentiment near bottom (+ Death cross!)

The Charts

Take a look at the charts below, do they look similar?

$SPY - SPDR S&P 500 2011 Daily chart

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$SPY - SPDR S&P 500 2010 Daily chart

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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