One of the posters over on Capitalstool.com’s Stool Pigeons Wire posted this chart from the blog of Barry Ritholtz.
My take on the chart is different. What it says to me is that we are only now just half way down in this market. Here’s how it looks to me.
The market first reached the current level on this oscillator roughly in the middle of 1931, just a little more than half way through the move in time, and about half way in price.
That suggests to me that this move is about halfway done.
Which would mean that the ultimate price objective is a negative number.
Obviously, the market can’t go negative, but it would seem to be headed toward much lower levels.
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