Four Rallies, Same Pattern

"I remember you!"
--Mason Storm (Hard to Kill)

Over the past two years, we have seen four rallies with strikingly similar characteristics. Each one has been a straight up move of about three month's duration, during which time the SPX has advanced about 175 points.

Each of these rallies can be related to major central bank interventions as well. Rally 1 corresponded to QE1. Rallies 2 and 3 corresponded to QE2.

Rally 4, the one that we are in now, corresponds to the EU's LTRO program.

We should see shortly whether Rally 4 remains true to the 3 month/175 point pattern. Or whether it breaks the mold.

position in SPX