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They say “History doesn’t repeat, but sometimes it rhymes!” This weeks election results are being contested in Florida, similar to what happened in 2000.
In the fall of 2000, the S&P made a nominal new high. Momentum was diverging (creating lower highs) and a bearish-rising wedge was forming. We all know the results once support of the rising wedge took place.
Is the S&P 500 repeating patterns now similar to 2000? This fall the S&P made a nominal new high; momentum is diverging (creating lower highs) and a bearish- rising wedge could be in play.
Will history repeat exactly this year? I doubt it. But, if multi-year rising support does happen to give way, selling pressure could increase similar to 2000.