The Orthodox Broadening Top - Is a Crash Around The Corner?

12 thg 8, 2018

The 4 charts seen in this post are all from different time periods, all the same pattern, and all have the same result (except present day). Ladies and Gents 3.01% - I present the Orthodox Broadening Top (Parabolic Edition). This is a simple pattern - high, low, higher high, lower low, higher high, crash. The 1st chart (top left) is the Dow leading up to the massive crash in 1929 and the Great Depression. I'd like to point out that 1905-1920 was a sideways secular bear market before the run up (more on that in a few). I have noted years on the chart (all of them that aren't present day) where the chart seems to correlate with today's. The 2nd chart on the top right is Silver -0.20% . After that last spike, from high to low, it seen a crash slightly above 72% occur. The 3rd chart (bottom right) is the Dow back in 1959-1966. This was leading into a 16 year sideways secular bear market (like the one from 1905-1920) that was from 1966-1982. The bottom left is the final chart, which is present day. I wanted to point out that a secular bear market predated the crash in '29, and we had a secular bear market most recently (66-82) and haven't had one since. Could a crash be around the corner? If history tells us anything - that or a secular bear market seem to be coming sooner than later.