The time scales are different, but the similarities in the historical DOW chart and a recent 60 minute chart of the S&P; 500 are amazingly alike.
click on chart for sharper image
Although these types of direct historical comparisons have limited trading value, it is still interesting to see similar patterns repeat now and then. The market action from the high in April matches the market action from the October 1929 high almost perfectly (albeit on different time scales).
Should the pattern continue you might expect something like this.
Dow October 1929 – July 1933
click on chart for sharper image
The first chart ended October 1930, where the above red arrow starts. I am not calling for the pattern to continue, but I am certainly open to the idea that it could.
Mike “Mish” Shedlock
Click Here To Scroll Thru My Recent Post List
