By Gary Holland, Opportunistic Trader Contributor
Back on December 16th (a week after where D is marked on the 2018-2019 chart) I wrote a piece that was
added to the ‘Insights’ section of The Opportunistic Trader describing a chart pattern analog that was
occurring between the action seen after the 11th Oct 2007 high and the more recent 3rd Oct 2018 high.
I note that Nomura wrote a piece on this same subject four days after it was published here on The
Opportunistic Trader – Maybe they’re a subscriber?
Since that Dec 16th piece the analog has continued to hold and I’ve updated the charts I included in that
piece showing how the historic rally seen on 26 Dec 2018 mirrors the one seen on 22nd and 23rd Jan 2008
(i.e. the low marked as E).
The next important test for this analog is the rally seen from the E low on the 2007 – 2009 chart. In what
was, by that time, Jan 2008 the move from E to F rallied to near (but didn’t break) a 61.8% retracement of
the D to E sell-off. In the present day example this retracement level comes in at 2625.00.
Let’s see how things go.