The market action of late reminds me of what I experienced in 1987.
If we are repeating the '87 stock market crash, it could be bullish, as the lows could be in play already.
In today’s 2-pack, I highlight the similarities and what to watch for.
In 1986-1987 (left chart), the S&P 500 rallied from 230 to 340 over 13 months before falling 35 percent. It then rallied sharply before giving back gains and putting in a higher low.
2020 deja vu? You can’t make up the similarities in numbers! During 2018-2020 (right chart), the S&P 500 rallied from 2300 to 3400 over 15 months before falling 35 percent. We have once again rallied sharply.
(Click on image to enlarge)
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