History repeats itself

7/11/08

I still do not see any bottom sign. The market had a very volatile session. The Dow had registered the mark 11,000 before the News hit the wire that both FNM and FRE can use the discount window. Then the market has gain short lived rally to positive before it closed down 125 points. The Fed and Treasury both shore up FNM and FRE over the weekend. Hopefully, it could boost the market up on Monday in order to confirm the Friday candlestick reversal pattern.
History repeats again that Fed rescue FNM and FRE like BSC. Also, the timing of this Bear market swing like in year 2001. Let me share one of the similarity of index swing of S&P. For timing date,
1. 1/31/2001-3/22/2001, down 50 days with 302 points; 2/1/2008-3/17/2008, down 45 days with 137 points.
2. 3/22/2001-5/22/2001, up 61 days with 235 points; 3/17/2009-5/22/2008, up 63 days with 183 points.
3. 5/22/2001-9/21/2001, down 122 days with 371 points; 5/22/2008-?/?/???? unknown.
From that, we could see how strong the timing of the up and down swing of S&) for both bear markets. They are almost the same for the period of month of Jan-May. Here is the main point that after the month of May, the down trend lasted 4 months in year 2001 with 371 points. So, here is the question on coming. When would this down trend swing ended?? We will see.