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From the late 1960’s until the early 1980’s, the Dow looked to create a large mega phone pattern. As it was attempting to break from the top of this pattern, fundamental valuations were low on a historical basis.
The Dow since 2000, looks to be making another large mega phone pattern. The fundamental valuations currently, as the Dow is attempting to breakout, are a little different than in 1982, highlighted in the chart above! Q- ratio now at the same levels as were hit in 1929, 1966 and 2007!
IMHO, this is not your Fathers Mega Phone pattern! Another long lasting bull market about to take place on a breakout of this mega phone pattern? Sure could, yet it doesn’t have valuations on its side! Stay tuned….