In 1986, crude oil crashed from the $30 level and dropped down to the $10 level and created a solid level of support that held the 1987 crash in late 1987.
The 1991 drop in crude oil was a solid platform where prices advanced from without much downside risk.
The 1994 ultimate bottom in crude oil proved to be another launching pad for what was to be the internet bubble from 1995-2000.
The 1998 drop in crude proved to be an important drop because it held the 2002-2003 bottom and later on it also held the 2008-2009 bottom too.
The current drop is taking awhile to form a base, but the psychology is very similar.
Post your version of this chart or your comments.
All the best,
2/24/2016 DJIA 16407 last, S&P500 1920
The "crude oil bottom of 2016" did indeed great the base that was tested later on in 2016. The pattern continues....
Also, about bottoms that lead to further raise in the markets. In 2008 (and possibly the rest) what was the reason for the Oil Drop? Because i feel that then everything dropped with the collapse (gold including). So i'm not quite sure what dictated the bottom there - oil, or markets to oil?
Sunlight always disinfects.
As always your comments are insightful and appreciated.