Note the sideways pattern in mid-2007 lasting from August to December. The resolution was a 50% haircut in the SPX. Fast forward to 2010 and we see a similar sideways pattern lasting an almost identical 5 months. Notice how the SPX Trend Model remained SHORT in both instances, early in both and in retrospect, quite handy in the wake of prices eventually breaking down in late 2007.
The window is open for a repeat performance.
A
