Look Out for the 2008 Comparisons
If the market can't rally on Friday, then I suspect the talk of the S&P 500 triangle formation will disappear -- and, instead, we'll see an increasing number of comparisons with 2008. I wrote about this comparison about three weeks ago, well before the S&P was near the 200-day moving average line, but since I've seen it arise all over the place.
As a refresher, let's revisit the chart from 2008. From the fall of 2007 through early spring of 2008, a head-and-shoulders top formed in the S&P. When Bear Stearns began to falter in late February and early March, the index plunged, making a low around 1250 in mid-March. From there the S&P rallied about 15% over the course of six to eight weeks, until it kissed the 200-day moving average line. That period is noted in the red box, labeled "A," on the chart below....495 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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