One of the most proven patterns in the stock market occurs during "Crashes".
About 80% of the time that the market (like SP 500) drops 20% or more (like Leg 1 at -34% in the graph below) and then experiences
a retracement of over 50% of the drop, that usually means that the bottom has been reached.
But, if the market stalls at the 50% retracement point level and heads back down, it will either:
(a) test the recent bottom and head back up to new highs over time, or
(b) continue the drop at a faster pace and end up dropping to up to 2 times more than the first drop (Leg 2) before it heads back up
In the graph below, you can see that we are basically "there now" (D-Day is here) !!!
- instead of guessing, let's let MIPS tell us what to do next...
Paul Distefano, PhD
Founder / Developer
MIPS Timing Systems