Repeat of the 2000 dot-com bubble? Some dubious speculation...
I took the bar pattern of the 2000 bubble pop and subsequent bear market and copied it to the present day to see what it would look like.
I did adjust the shape a little to make the H&S look more symmetrical, just like the H&S in 2000.
You can see it fits rather well.
- The RSI is topping and expected to trend lower.
- The bottom of the breakdown lines up with the market top in 2000 and 2008.
- It bottoms at the lower support of the megaphone pattern.
- Finally, the length of the move is proportional to the one in 2000.
Despite how 'perfectly' it all fits, extrapolating 2 years out to find the bottom is dubious speculation. It goes without saying, but it most likely will not go down like this.
Disclaimer: I am not bearish nor am I bullish. I don't hold a macro outlook. I simply react to what the market tells me. This was just a fun hypothetical.
I did adjust the shape a little to make the H&S look more symmetrical, just like the H&S in 2000.
You can see it fits rather well.
- The RSI is topping and expected to trend lower.
- The bottom of the breakdown lines up with the market top in 2000 and 2008.
- It bottoms at the lower support of the megaphone pattern.
- Finally, the length of the move is proportional to the one in 2000.
Despite how 'perfectly' it all fits, extrapolating 2 years out to find the bottom is dubious speculation. It goes without saying, but it most likely will not go down like this.
Disclaimer: I am not bearish nor am I bullish. I don't hold a macro outlook. I simply react to what the market tells me. This was just a fun hypothetical.