October 1987, Is That You?

Price action has an eerie similarity to August 1987 and the months following.

To those old enough … recall how prices just seemed to press higher and higher during the summer months?  Stretched, they were.

Then came a break with a move lower.  After a while, a few weeks or so, it seemed as if the market was going to make another attempt.

The second attempt did not seem as energetic.  Prices continued on though … until they stalled and headed lower.

Just like now?

Continuing on with 1987, price action drifted on down; seemingly with out much fanfare until one day … a Friday there was a huge drop.

That was Friday, October 16, 1987.  We all know the action that followed on Monday.

Getting back to the markets at hand:

The last bond update showed a potential bullish set-up. 

There’s nothing that says bonds can’t start higher now.  In fact, it’s been two up days in a row for TLT.

If TLT penetrates the 160.98, level to the up-side, it’s a classical analysis (not a recommendation, not advice) buy signal on the weekly time-frame.

As of this post (7:01 p.m. EST), the S&P futures are already down -22 points, or about -.65%.  Correspondingly, bonds are higher.       

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

One response

  1. Pingback: The Squeeze Is On « The Danger Point

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