At the end of the day, an analyst’s job is to take a complex thing, make some kind of good sense of it, and let his or her readers know what the data tells them.
When that complex “thing” is stocks, there are a few ways we can do that.
A fundamental analyst is going to look at things like cash flow for a company or the S&P 500, and… make some sense of it, and make an educated, informed guess as to what’s going to happen – where those fundamentals will be in the future.
A technical analyst like me is going to look at history (in the form of charts) and determine – you guessed it – what’s going to happen – whether history’s going to repeat itself or not.
And so I’d like to share a chart with you all today. Not just “a” chart, but the chart that tells us not only where we’ve been, but more importantly, what to expect in the near term.
Here we go…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.
This post is from Money Morning. We encourage our readers to continue reading the full article from the original source here.