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For the “Third time in the past Four years” the Wilshire 5000 is touching line (1), which comes into play around the 14,000-14,500 zone. Will the “Third Time” be a charm and resistance give way at (2)?
In 2007, the Wilshire did break above line (1) and it rallied another 10%, in 10 months. Keep a close eye on this very broad index to see if the positive momentum that is at hand, can break this key price zone.
Looks a lot like a giant head and shoulders top to me. What do you think?
If it doesn’t break it that’s a big, big head and shoulder pattern! With a neckline that if it were broken would imply prices going to “next to nothing” – “next to nothing” that’s a technical term 😉
Chris,
Does Europe 2011-2012 resemble US 2007-2008?
Oil prices are at all time highs in their currency and soaring while vgk, Stoxx600,Dax have not reached their highs of 2011.
It appears to be a role reversal. What happened here circa may-july 2008 is just starting there.