Not that I am a great believer in using past market patterns to forecast the future, I however think that it may be helpful to put things in perspective bearing in mind the current debate on the US debt ceiling and the possible outcome of tonight’s vote. So I have used an R script posted on the “Systematic Investor” to look at what the S&P has done over period of 125 days and to compare it to period in the past where it exhibited the same type of behaviour whilst posting also the following 125 days…..
Looks pretty much middle of the range to me, so there is plenty of room left to express yourself as a bear or a bull….I am of the later… 🙂