Will history repeat itself? Interesting comparison from 08' & 22
I was looking at the start of April 2008 through May 1st 2008, when I noticed similar price action from April 2022 through May 1st 2022.
On both charts, at the start of April to the 1st May the price fell an average of 16%. Since I know what happened in 2008, I used the fib retracement to see how much of retracement the NASDAQ would go and how long it would take. On the left chart, you'll see NDAQ retraced back to the .618 level on Wednesday, May 7th. then got rejected by the 200 day moving average. The following week the CPI report for April was released Wednesday, May 14th which caused a huge dump that lasted to the third week of May. That dump was a total of 19%. That is insane! So, I started to think maybe the same thing will happen this current May 2022. It is very possible that history will repeat itself. I decided to fib retracement April-May exactly how I retraced it in 2008. According to my calculation it should take 7 trading days in May 2022 to reach the .618 fib level. That is exactly where the 50 day moving average is at price $172. This is the same day the April 2022 CPI report will be released Wednesday, May 11th. If we retrace by then and then later the market dumps 19% like it did in May 2008. The dump will hit a current major support level at $140-145 zone! Well isn't that a coincidence? That price level $140-145 became the major support on Jan 2021. The same year that inflation started to take affect on our economy. Could it be possible that we crash this May as a symbol to end inflation?
On both charts, at the start of April to the 1st May the price fell an average of 16%. Since I know what happened in 2008, I used the fib retracement to see how much of retracement the NASDAQ would go and how long it would take. On the left chart, you'll see NDAQ retraced back to the .618 level on Wednesday, May 7th. then got rejected by the 200 day moving average. The following week the CPI report for April was released Wednesday, May 14th which caused a huge dump that lasted to the third week of May. That dump was a total of 19%. That is insane! So, I started to think maybe the same thing will happen this current May 2022. It is very possible that history will repeat itself. I decided to fib retracement April-May exactly how I retraced it in 2008. According to my calculation it should take 7 trading days in May 2022 to reach the .618 fib level. That is exactly where the 50 day moving average is at price $172. This is the same day the April 2022 CPI report will be released Wednesday, May 11th. If we retrace by then and then later the market dumps 19% like it did in May 2008. The dump will hit a current major support level at $140-145 zone! Well isn't that a coincidence? That price level $140-145 became the major support on Jan 2021. The same year that inflation started to take affect on our economy. Could it be possible that we crash this May as a symbol to end inflation?