All green lines are perfectly parallel, same with all blue lines. All green and blue lines are spaced identically.
I just deleted gobs and gobs of words I was going to tag to this chart. To be more brief, here are some scenarios I'm thinking about (one is better off doing that on their own anyway). Simple for you maybe, not so simple for me.
(1) 9-year inverse relationship of $BKX;$SPX remains, ratio breaks upward from '02 support line. Will $SPX cling to its green channel top and wait for the leader to show up? Will $SPX blow off until $BKX tags its green channel top?
(2) 9-year inverse relationship of $BKX;$SPX remains, ratio breaks downward through '02 support line. Will $SPX stay put while $BKX continues it's divergence? Will $SPX finally succumb and reset for another shot higher than before?
(3) 9-year inverse relationship of $BKX;$SPX ends, ratio breaks upward from '02 support line. Will banks lead the bull market to wave-3 rapture? Will banks take all the money and run?
(4) 9-year inverse relationship of $BKX;$SPX ends, ratio breaks downward from '02 support line. Will banks lead $SPX all the way down to the fiery depths
of..... say, 1460
? Will $SPX make out better than the banks in the end
?
http://stockcharts.com/c-sc/sc?s=$SPX&p=W&yr=5&mn=0&dy=0&i=p30040520541&a=97790912&r=9169.png
Edited by spielchekr, 26 May 2007 - 11:52 PM.