The Law of Small Numbers Bennet Sedacca Dec 01, 2008 11:30 am |
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- KIX (KBW Insurance Index) moved from roughly 200 to 50, then proceeded to bounce nearly 50% in a week; it remains roughly 60% below its high.

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- NDX (NASDAQ 100), in its early stages of its bear market from the historic March 2000 high, it dropped 70% in 15 months or so in its primary down move, only to bounce -- you guessed it -- 50% in a couple of weeks.

Click to enlarge - XBD (Amex Broker/Dealer Index) fell 81% from its high last year, only to gain 50% in a week.

Click to enlarge - There is most definitely a trend here, if not outright symmetry in these patterns - which was one of the ways in which I found the 750 level in the S&P 500 attractive for a fierce bounce in what I feel is still both a cyclical and secular bear market for equities.
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