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I noticed an amazing, exciting (although a bit frightening) correlation between the
periods 1986-1987 and 1996-1997.
I guess that other traders probably made this recent discovery.
I have attached the chart of SP500 Cash with the 2 above periods overlapped: the result
is a correlation of 93 % !!!
A proverb of my country says(translated from french): "Comparison is not reason"
But maybe sometimes there can be exception to the rule. If this comparison between
87 and 97 proves to be good until the end of the chart, the market recovery that started
yesterday - tuesday aug. 19 - should only last some days (in 1987, this B wave rally
lasted 19 days, then the market crashed into Wave C).
Another interesting parralel to be made is that at the last top of August, as in August
1987, several indicators (like MACD, RSI) presented NO divergence - making as if new
highs were still to come.
We will see...comments welcome
Carl
(Note: I have attached a PCX zipped file to this message; I hope it is the good procedure
to show sharts to the readers of RT; if not, please let me know)
Carl Vanhaesendonck
BrusselsThe following section of this message contains a file attachment
prepared for transmission using the Internet MIME message format.
If you are using Pegasus Mail, or any another MIME-compliant system,
you should be able to save it or view it from within your mailer.
If you cannot, please ask your system administrator for assistance.
---- File information -----------
File: sp500.zip
Date: 20 Aug 1997, 10:24
Size: 12659 bytes.
Type: ZIP-archive
Attachment Converted: "c:\eudora\attach\sp500.zip"
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