Many traders have been following the 1974 analogy to the current market. The Dow Industrials have traded in a remarkably similar pattern to the Dow in the 1973 – 1974 time period.
According to the analogy, the market is now due for a major advance of 50% – 70%. In the chart below, the current Dow Jones Industrial Average is pictured in blue, while the 1973 – 1974 Dow is a black line.
The following chart is a closeup of the current market versus the market in 1974. The comparison basically shows that the market should not make a new low. In fact, it should begin a rather strong advance within the next several days, otherwise the overlay will disengage.