Let me first preface this post with a quick note. By me posting these charts by no way means that I believe a crash is coming like in 2008. That is not
what I believe in here, no one knows what is going to happen and therefore it would be foolish and irresponsible for me to ‘predict’ such a thing. The purpose of me posting this is just for some good ol’ correlational fun, like all market participants like to have occasionally. This is data is not actionable, focus on the current price action, not correlations.
The first chart you will see below is a chart of $IWM (weekly) in 2008.
Next, below you can see the current weekly chart of $IWM in 2014.
Perhaps it’s just me, but these two charts look eerily similar to one another. Again, perhaps it means nothing, likely does. But once again, you always need to have an open mind as a trader.
The final chart, shown below, is a weekly chart of 2007-2009 so you can see what happened after the 2008 topping pattern.
Hope you have a great rest of the weekend. If you have any questions, ee