Jeff Cooper: In Current Market Action, Chart Shows Parallels to 2000 and 2007
From the Buzz and Banter: Got geometry?
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February's S&P 500 (INDEXSP:.INX) range is 130 points. Since 130 is straight across and opposite late last week, we are left with a possible square-out of the range confirming a potential high -- of what degree remains to be seen.
Click to enlarge
The run up a few months from the January peak is reminiscent of the March high in the Nasdaq (INDEXNASDAQ:.IXIC) and S&P two months after the January high in 2000.
Additionally, Friday's high was roughly 20 points over the late December peak, which was the same relationship the July primary high had with the October culminating high in 2007 (1556 to 1576).
Finally, I can't help but wonder whether Friday's new high was a false overthrow of the prior peak, mirroring the false undercut low in October 2011 off the prior climatic low two months prior.
As above, so below?
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