Tuesday, 27 September 2011

More parallels with March 2008

Two weeks ago I posted charts of the S&P 500 illustrating that the market for the past few months looks similar to the market for the several months leading up to March 2008.

Since that post two weeks ago, Gold has put in a strong decline. Guess when Gold's big decline in 2008 began? March.

Both the above make me think that market psychology now is similar to that from March 2008. At that point, the first leg of the bear market still had a year to run.

ASX 200 set to open higher

Daily candlestick chart shown below, including after hours trading, currently at 3973, up from Monday's ASX 200 close of 3864. The trend is down at this time frame, and also on the weekly and monthly charts.