2014 and 2018: Similarities and Differences

8 mai 2018

So finally more of the pundits are starting to recognize that this correction is akin to 2014. Though similar, there are some differences...

1] As the spike was less, the correction is shorter
2] Closer to the multi-year base-line [300% per annum]
3] Much steeper correction

Other significant factors:

1] Retracement form the peak is to the 0.78 Fib level, to roughly 25% of the peak price
2] The death cross, representing a long period down and sideways.. though only six months for 2018
3] The new spike begins when the previous ATH is recovered.

I'd add that this is a working model I take it to be provisionally true until price developments falsify it. At the moment, price developments have only served to corroborate it.

8 mai 2018

Note