S&P 500 Rally Poised to End, DeGraaf Says: Technical Analysis

The U.S. stock market may follow a path similar to Japan’s benchmark Nikkei 225 Stock Average from 1992 to 2000, he said. The average fell 40 percent during that span even as it posted five quarterly advances of at least 10 percent.

“Japan from 1992 to 2000 was in what aviators call a phugoid -- which is just this long oscillation in price,” deGraaf said. “It looks to us like there’s a reasonable probability that we’re going to enter into a similar period, with more government intervention and all these things that tend to come about after a bubble, particularly one that’s been driven by credit.”

My Comments: Our up current situation is often compared to Japan's "Lost Decade"...Recently we've had an explosive rally with surprising earnings...All of this contradiction leads to one thing. Confusion. A simple solution is to accept the uncertainty and use it to your advantage. Understand that it doesn't matter what happens next or who predicts what if you have a plan...

Full article here...