HOW 1987-1992 MAY PRESENT THE HOLY GRAIL FOR THE CURRENT MARKET

Posted By admin on Oct 24, 2012 | 0 comments

This correlation study follows two crashes in relation to the exact same trajectory: 1987 and 2008. A break of the exact same trajectory point triggered both crashes. Both crashes were similar in scope. Both crashes moved right back up to the trajectory in a similar time frame. Both corrections following the rally off the lows were similar in time and price. Both rallies off the lows ended up getting pinned to the trajectory.

The future potential of the current market becomes clear only when looking at the similarities of the past. Here is the study:

click chart to enlarge

DOW 1987 CRASH VS. DOW 2008 CRASH

What did the future hold for the Dow following the traumatic events of 1987, the subsequent rally back up and the seeming stalemate as prices became glued to the generational trajectory? One of the greatest bull runs of all time started some years later in 1995.

Here is a look from the point at which the last chart ends:

DOW 1992-1997

And finally, what all of this means for the future of the Dow:

DOW 2015