The Mother of All Analogs (Revisited)

• Posted by Danny
• on August 27th, 2012

As the old saying goes, history may not repeat itself, but it often rhymes.

Or something like that. Anyway, analogs are always fun to look at for me, especially on large time frames. Whether comparing sets of weeks, months or years, it’s interesting to note trends and patterns within the markets that may or may not mean anything at all.

It often seems to me that the “perfect” analog isn’t picked up on until it has reached the point where it’s already “obvious”. By then it’s not very useful and is just cool to study in hindsight. But here is one we’ve been tracking for about a year and is very curious.

Last August we posted these two crazy possibilities setting up for a massive analog, comparing the last 10 years or so in the S&P500′s chart to the 1960-70′s.

Fast forward to today…and this is what we now find:

Scenario 1

(click to zoom)

 

…and in Scenario 2, we back up the starting point 4 years at the red circle.

 

All this is just chart magic, but you never know…

 

 

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