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What do the highs in 2000 & 2007 and the lows in 2002 and 2009 have in common? Each of these took place 7-years apart in the broad based NYSE Index.
Odds are most likely slim that a key high takes place 7-years after the 2007 highs took place, based upon this cycle. I do find it interesting that line (1), which is drawn off several key emotipoints (emotional highs/lows) dating all the way back to the early 1980’s, could be coming into place a few percent above current prices at a 7-year time window.
Currently the NYSE index and the NYSE advance/decline line are at/near all-time highs, acting healthy at this time. For the 7-year time window to have an impact again, some weakness in the Advance/Decline lines would need to start showing up.