Chart Analysis
As you probably already know, we believe that charts (and all Technical Analysis) have zero predictive value, because charts are just showing past data and unless this data is used as a statistical predictor, the act of projecting all sort of visual fantasies (patterns, trends, etc.) or our bias, onto a chart, it’s just an exercise in self-delusion.
However, from time to time we like to throw in a chart or two to help the reader visualize where our levels are in comparison to the market current price, or to visualize the recent market action in relation to our levels. As this year 2014 is closing, we’d like to look at a SPX chart of the last 50 years (below). (more…)