Comparing Historical Stock Market Top Indicators
Kirk Du Plessis | Dec 19, 2011 07:24AM ET
The similarities are growing by the day as I compare the historical market top indicators for the 2008 market top and the current volatility. If you’ve been reading this blog for a while you know that I’ve highlighted this comparison numerous times before and I’ll keep pointing it out until it doesn’t work.
Watch this video update as I go over the two charts below in more detail. And don’t forget to add your comments below and let me know what you think about the possibility of 2,000 point sell-off on the Dow Jones?
2008 Market Top
Below is a chart of the 2008 market top and I’ve highlighted areas of support, resistance, and consolidation. It’s really amazing to see the turn in hindsight because it was so clear. I just hope we all don’t fall into the same trap this time around.
2011 Market Top?
I was just talking with a coaching client last night and had reminded him that a market top is simply the same investor psychology cycle with a different catalyst. In 2008 it was the sub-prime mess and right now that could be the Euro debt crisis.
See The Video Below.
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