I posted charts on 6/10/10 regarding the similarity between current stock market and the1987 top,
I see Bob Prechter noticed this pattern similarity as well and was on Bloomberg yesterday talking about it.
Normally, a market guru pointing out a pattern on a major network would diminish the likelihood of the pattern working out. However, I'm seeing pretty heavy call buying in the ISEE All Equities Only
data yesterday and today, which probably means investors are not aware of the pattern similarity or don't believe it. This seems ominous given the potential crash scenario unfolding. It is what it is until it isn't. It probably isn't if we advance above recent highs. If that occurred, some other pattern would be developing, though I think the bigger picture remains bearish unless the major indices can get a couple closes more than 3% above the April 2010 highs.
Kim Rice 8/12/10
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