Party Like It's 1929

Meredith Jessup | July 05, 2010 12:30 PM

CNBC guest Daryl Guppy, CEO of Guppytraders.com, points out an interesting pattern today--the Dow Jones Industrial Average is repeating an oddly similar pattern to the stock market just before the Great Depression:

“Those who don’t remember history are doomed to repeat it…there was a head and shoulders pattern that developed before the Depression in 1929, then with the recovery in 1930 we had another head and shoulders pattern that preceded a fall in the market, and in the current Dow situation we see an exact repeat of that environment,” Guppy said.
The Dow retreated 457.33 points, or 4.5 percent last week, to close at 9,686 Friday. Guppy said a Dow fall below 9,800 confirmed the head and shoulders pattern.
The Shanghai Composite is seeing a very rapid collapse, falling below 2,500, which suggests the major fall in the Dow, he added.
In the European markets, Guppy says Frankfurt's Dax is witnessing a different pattern to London's FTSE.
Guppy uses the broad trading band as measurement- giving the Dax a downsize target of 1,500. The same head and shoulders pattern seen in the Dow can also being seen in the FTSE, he added.

Meanwhile, some economic analysts are calling President Obama "the great jobs killer," and the UK Telegraph says it's beginning to feel a lot like 1932...