I have had enough damage done from marrying myself to an analog that I approach them with caution these days. Just like Elliott Waves, analogs represent for me enough disappointment that I view them with suspicion. The difference, though, is that in my opinion Elliott Waves are greatly for explaining what happened (after the fact), whereas analogs can actually have some utility for predictive value.
But, staring at the S&P chart (and what else does a person do on a beautiful Saturday morning?), I couldn't help but notice the parallels again. I have, in my inimitable chicken-scratch, marked up the chart from the glorious days of 2007 and 2008…
And here, of course, is the present…
It is breathtaking to me how perfectly these line up. The relationship from extreme to extreme is almost perfect.
The biggest question of all, of course, is……what happens after "O"? If the analog were to play out perfectly, we'd be in the throes of a full-out plunge at this very moment. Instead, we just wrapped up a day that saw that Dow tack on nearly 200 points. Indeed, since 11/28, it's pretty much been a bull orgy. So: WTF?
Unless and until we violate the highs of October 27th, I'm willing to believe we are in "post-O mode". The bastard central bankers and their estimated $27 trillion (yes, trillion) that has been thrown at this mess is obviously going to do a decent job keeping things levitating. But the forces of gravity will eventually overpower these nitwits, in my belief.
He that perseveres to the end, he shall be saved.
