The rally 6 months ago:
1. On September 29th, 2015 the S&P 500 made a low at 1,871.91. In the next 26 trading days the S&P rallied straight up to 2,116.48. This was a bounce of 244.57 points.
The latest epic rally:
2. On February 11th, 2016 the S&P 500 made a low at 1,810.10. Since then, the S&P has rallied sharply higher for 26 trading days to 2,052.36, a bounce of 242.26 points.
Ultimately, the bounces have taken place over the exact same time with virtually identical point moves. So we look historically what happened after the last mega bounce that started on September 29th, 2015. The S&P collapses down almost 14.5%. Therefore, the symmetric move would mean the next move down should start as early as Monday, March 21st, 2016 and drop the S&P to 1,755 (a 14.5% drop).
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Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
