Fun with analogs and breadth thrusts

There was an amusing joke tweet that circulated, which overlaid the 2020 market experience over the 2008 bear market and projected a downside target of 125 for SPY. If anyone saw that, it was a joke and not intended to be serious analysis.

Nevertheless, analogs can be useful in analyzing markets, but with a caveat. As the adage goes, history doesn't repeat itself, but rhymes. Traders who use analogs often expect the market to follow every single squiggle of the historical analog, which is unrealistic.

The full post can be found here.