Could the market be facing a 1935 redux? The following two charts look awfully similar. And if the relationship holds, the market is in for a 50% rally that won’t see a significant pull back until the beginning of 2006.
There’s some validity to the idea because we haven’t seen the NDX outperform the SPX this much since Oct 2002. While we could just be seeing a bear market rally, I’m guessing that there’s a potential for the market to remain strong for the remainder of the year.
