I am only able to create this chart with weekly data, but the pattern in the daily provided all of the necessary detail to really nail the pattern. Daily cash index and futures data goes back to 2000 here on TradingView, but weekly you can see extends back to 1985.
The important points to look for are support and resistance zones that are set up prior to the bull market, which are then re-tested once the bull market is over. Then watch what happens at those key support zones to rebuild that support.
What you are not seeing in this chart is what the other markets are doing: Bonds, Gold, US Dollar, Crude Oil and Federal Reserve Policy.
With that in mind. I hope this chart serves as a useful construct for how markets go from balance, to imbalance (the bull market) and then back to balance again (crash and return to old balance levels).
Best regards,
Tim 1:09AM EST Tuesday, Feb 12, 2013
The important points to look for are support and resistance zones that are set up prior to the bull market, which are then re-tested once the bull market is over. Then watch what happens at those key support zones to rebuild that support.
What you are not seeing in this chart is what the other markets are doing: Bonds, Gold, US Dollar, Crude Oil and Federal Reserve Policy.
With that in mind. I hope this chart serves as a useful construct for how markets go from balance, to imbalance (the bull market) and then back to balance again (crash and return to old balance levels).
Best regards,
Tim 1:09AM EST Tuesday, Feb 12, 2013
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