Charting Down Under: The Australia All Ordinaries Index
Doug Short | May 14, 2013 01:12AM ET
What would the S&P 500 look like without the Tech Bubble? Perhaps something resembling Australia's All Ordinaries Index. I've included the S&P 500 in the background to support the idea.
I'm not a technical analyst, but the twin peaks in the S&P 500 over the last dozen years looks like a double top. On a smaller scale the shape of the All Ords since the 2009 trough also has a bit of "twin-peaks" appearance.
There are some who might view the All Ordinaries dramatic 56-month rise to the 2007 peak as a bubble. While the All Ords may indeed have become frothy, it's no match for a couple of widely acknowledged historic bubbles.
Footnote: Why the linear regression in the top chart? I included it merely to give a sense of what a mathematically precise line through the daily closes would look like. The regression divides the closes so that they are, in simple terms, evenly divided above and below the line.
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