SP500
This is a two-series post.
Part 1. US. History is all we have.
This is a very simple and kind of a useful technique but only if you know what you’re looking for. The rule is not a rocket science that says: the market is a pure chaos between two points A and B under research. Obviously, all we need is to find that potential turning point like A or B to take a side.
Looking back in history we may find two such points in May-June 2001 and May-June 2008 (yellow boxes). Those times we had -40% and -50% drops. Turning points were May 21, 2001 and May 19, 2008 (the fact that May played its role is a coincidence, those could any of the 12). We made that conclusion because of the major trend that should prevail. It is indicated by the monthly timeframe (a bold red trendline).
-ks
Part 1. US. History is all we have.
This is a very simple and kind of a useful technique but only if you know what you’re looking for. The rule is not a rocket science that says: the market is a pure chaos between two points A and B under research. Obviously, all we need is to find that potential turning point like A or B to take a side.
Looking back in history we may find two such points in May-June 2001 and May-June 2008 (yellow boxes). Those times we had -40% and -50% drops. Turning points were May 21, 2001 and May 19, 2008 (the fact that May played its role is a coincidence, those could any of the 12). We made that conclusion because of the major trend that should prevail. It is indicated by the monthly timeframe (a bold red trendline).
-ks
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.