I am not a Bull nor a Bear…just attempting in these unique times to provide research that can “assist investors to enlarge their portfolios regardless of market direction.”
Below is a pattern that looks to have influenced the S&P 500 to rally at least 20% in a few months, 5 different times in the past 10 years. The condition did not always mean a long-term low was in place, yet it did provide/create a situation that investors could pick up some extra pocket change along the way or reduce short exposure if that was the position at hand.
CLICK ON CHART TO ENLARGE
The high fear level does provide a place that aggressive investors can step forward and go long with a stop below support at (2)!
A year ago bonds were at a peak (see post here) and stocks were at a low and the “Power of the Pattern“ found that a unique currency/sentiment situation was at hand that was suggesting to go long stocks and the patterns seemed to suggest the size of the rally would surprise many investors (see post here)
The Franc/ (see post here) situation and the VIX could well be suggesting at least, another short-term surprise like last year is very closet at hand!