I have been a long time user of analogs. I like looking to history to see how it echoes back against us, again and again. I have studied the crash of 1929 and the Great Depression at length. As a result, when I see patterns in today’s market, they sometimes remind me of patterns that I have seen before in markets of the past.
I had that experience again yesterday and today with the chart below. I recognized that SPY this year has been acting a lot like INDU acted in 1929, but on a slightly different timeframe. The 1929 chart shows roughly six weeks of trading action. The SPY chart shows all of 2022 thus far. History books can tell you what happened next.




