Is The Market About To Repeat Itself?

The Fall run up from August 31st (A) through November 5th (B) 2010 took 66 days and returned 18.6%.  S&P 500 went from 1027.75 to 1219.5 over that time.

This was followed by a 4.4% retracement from 1219.5 (B) to 1166 (C) over the next 8 trading days.

The current run up of 12% in the market started on November 30th (D) and has lasted the same 66 days to February 4th (E).  S&P 500 has gone from 1167.25 to the current high of 1308.

As is often noted, markets have a terrible habit of repeating themselves.  From Fibonacci’s and price counts, numbers seem to appear and reappear with daunting regularity.  Here is a pair that we find of interest.

Rule 6Rule of 6?

Photo: Lincoln Ellis

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