This is a comparison between NASDAQ 100 and SPY (which can also be substituted for SPX and the USA100) now.
The dotcom bust occurred in 2001 with a general wipeout of frankly rubbish techs tocks which were immensely overvalued.
A technical hallmark of this crash is the feature of a famous diamond reversal.
If you look at the bottom pane you will see how this unfolded on the NASDAQ100 in the year 2000
A - Beginning-Middle Peak
B = Middle-Bottom
C = Top Peak
D = Lower Bottom
E = End-Middle Peak
X = Reversal
Now, look at the top pane and what is occurring on the SPY.
We have a very similar technical form arranging itself on the SPY and naturally, this extends to the USA500 and all its derivatives.
The form in 2000 took 245 days to unfold and we appear to be running to a similar schedule now which means that if this form is not invalidated by a break into higher price territory, we may indeed see a similar reversal on equities in the first half of this year.
The dotcom bust occurred in 2001 with a general wipeout of frankly rubbish techs tocks which were immensely overvalued.
A technical hallmark of this crash is the feature of a famous diamond reversal.
If you look at the bottom pane you will see how this unfolded on the NASDAQ100 in the year 2000
A - Beginning-Middle Peak
B = Middle-Bottom
C = Top Peak
D = Lower Bottom
E = End-Middle Peak
X = Reversal
Now, look at the top pane and what is occurring on the SPY.
We have a very similar technical form arranging itself on the SPY and naturally, this extends to the USA500 and all its derivatives.
The form in 2000 took 245 days to unfold and we appear to be running to a similar schedule now which means that if this form is not invalidated by a break into higher price territory, we may indeed see a similar reversal on equities in the first half of this year.
