Sunday, October 18, 2015

chart: Stock Market, What's Next ?

The Stock Market is Doing Exactly What It Always Does
        By Business Insider
        Full Article at      http://read.bi/1ZPxrEv
In a recent slide deck sent out to clients, Deutsche Bank group chief economist David Folkerts-Landau included a chart, which shows the S&P 500's current correction-and-recovery episode compared to the historical average. 
Interestingly, the S&P is tracking the average gains following prior 10%+ corrections. The two lines even overlap nicely around the 30-days-after-the-trough zone.
So, nothing looks out of the ordinary for now.
However, even though the S&P has been more-or-less following the trajectory of the historical average for now, that does not mean that it will continue to do so in the future...
In any case, check out the chart below.
Courtesy of @BusinessInsider
The following chart is a product of EquityClock.com
Equity Clock is a division of the Tech Talk Financial Network, a market analysis company that provides technical, fundamental and seasonality analysis on a daily basis via TimingTheMarkets.com and EquityClock.com.   Equity Clock’s mission is to identify periods of reoccurring strength among individual equities in the market using methodologies presented by some of the top analysts in the industry, including that of Don Vialoux, author of TimingTheMarkets.com.
Feel free to use any of the content or seasonality studies (charts, timelines, or otherwise) presented as long as a link-back to this site at EquityClock.com is provided.

Courtesy of EquityClock.com
In the above chart the vertical color areas were added to make it easier to see the approximate months of November (yellow), December (blue),  January (purple) and February (green).

What is interesting is that these two charts that were produced by two different firms look very similar going forward.
When combining information from the above charts with prior posts like,
1- Sy Harding's STS posted Oct 15,2015
2- Record Bet Against Stocks posted Oct 9,2015
3- Zweig Breadth Thrust posted Oct 9,2015
it helps add more evidence that the stock market "may" see higher prices.

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This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  
Past performance is not indicative of future results

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