It is important to remember that patterns don't always repeat themselves in the exact way that they first occurred. That being said, here is a pattern that we spotted on the ALSI (Tradable Top 40 Index).
Example 1 in this case is from March 2011 and shows what the price action was at the onset of the previous market correction phase. It was about a 5% drop, followed by a bounce back up and finally (what took a few months) a 14% correction.
Example 2 simply shows that the same pattern is emerging. Will it repeat itself in the same way it happened in 2011? Only time will tell.
No comments:
Post a Comment