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Scary 1929 market chart gains traction

There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.

That at least is the conclusion reached by a frightening chart that has been making the rounds on Wall Street. The chart superimposes the market’s recent performance on top of a plot of its gyrations in 1928 and 1929.

The picture isn’t pretty. And it’s not as easy as you might think to wriggle out from underneath the bearish significance of this chart.

DeMark is even more outspokenly bearish. If the S&P 500 SPX decisively breaks the 1762 level, he told me, then a major bear market will have only just begun.

Article: http://www.marketwatch.com/story/scary-1929-market-chart-gai...

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Market Algorithms Are Quite Common

...due to the fractal nature of financial markets. Fractals occur at all time scales and can appear similar to each other for a time. Eventually the similarities end. It is possible to see the current market resolve in a manner similar to 1929 (on a smaller scale), but I don't believe there are any instances in recorded history of a financial panic occurring during this time of year (they are almost exclusively autumn events). Fascinating chart though.

different scales

The 1929 graph on the left measured from 12,400 to 18,000 a 45% increase. The 2014 graph on the right measures from 150 to 400 a 266% increase. Had the two graphs been on the same scale, the similarities would, at least, be less dramatic.

I am not up on market issue...

Hopefully the more experience of DP will give their input to this graph.

"First they ignore you, then they laugh at you, then they attack you, then you win!"

"The belief is worthless if the fear of social and physical punishment overrides the belief."

Well, the other way to look at this is

Now that we have the tools we can swoop in to make a nice profit ourselves. Why should the big boys have all of the fun? Watch the stock market crash and then buy cheap.


short it now.

Any other DPers know enough to confirm the validity of this chart?

Cyril's picture

Well, all I can say is:

Well, all I can say is:

if the PTB intended to send signals to their buddies during complete manipulation of a stock market-rigged-by-construction-Fed-pumping (for over a decade now)...

... they're busted.

Now, one might want to ask, legitimately:

but, could they be THAT stupid to take the risk against the odds of having someone curious enough, with this idea of plotting infamous charts in parallel, with or without factors of correlation?



Actually, I think they could.

Remember, that's the PTB - not extremely imaginative, by definition.

Are they?

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius