The NASDAQ hit its major trendline last month and has since bounced off it. This last happened in 2006, where in the following 5 months it continued to drop just under 50%.
And the first time it touched the trendline it dropped around 71%, 9 months after the touch.
History repeats itself, but not all patterns are the same.
With this in mind, based in previous evidence it would seem likely for a large drop within 3 months, if it continues a similar pattern.
We will just have to see how the market plays out and if there are fundamentals that will come into play to explain the market crash.
And the first time it touched the trendline it dropped around 71%, 9 months after the touch.
History repeats itself, but not all patterns are the same.
With this in mind, based in previous evidence it would seem likely for a large drop within 3 months, if it continues a similar pattern.
We will just have to see how the market plays out and if there are fundamentals that will come into play to explain the market crash.
