3309 Drysdale Ct
Edwardsville, IL 62025
Back in October, during the deepest correction of 2014, I did an
Lessons from the 2007 Bull Market Top“) of the price action of
three major indices and compared it to the 2007 bull market
To do this analysis, I had removed all noisy “price information”
from the charts and only looked at the behavior of the 50, 100, and
200 Day Moving Averages (DMAs). Doing so filtered out shorter term
price pattern noise and could better convey the longer term status
of the market.
The objective of this analysis was to see if we could draw any
conclusions from 2007 and perhaps determine whether the bull market
was indeed coming to its end in October of 2014.
Let me reiterate some of the key points from the analysis:
The bulls certainly had a reason for concern in October as it
appeared that some sort of a topping process was under way: the
Russell 50DMA had crossed under both 100 and 200DMAs and the 200DMA
started declining. By Noanet trader on stockwits
looks like we may have a little while to go...spx 200ma is still
upward the rut is flat but not close to the 50 at all..
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