that second chart is very interesting Volt. A big secular bull...

that second chart is very interesting Volt. A big secular bull ended in 1966 and yet the bulls were in denial till half way through the secular bear. The 1974 fall was about the index (finally)moving from overvalued bull market mode to buying op bear mode.

There has been volumes written on this thread about the comparisons of now to 1974. And once again we see the similarities. The last secular bull ended in about 2000. Once again we found ourselves half way through the secular bear before the bulls woke up and started to give up. The move now down towards the fair or under value range is as per the 1974 movement.

There is one thing that is scaring me though. I have been expecting a near 50% fall for quite some time based on the 74 comparison. But in 1974 PEs were still rising. But now as the index crosses from overvalue towards undervalue the PEs are falling at the same time......that much of the current action looks a little more like 1929. If the indices reach the buying op zone and if PEs remain at current levels or fall a bit further then we could find ourselves back at 1995 levels.....DJIA under 4000 and SPX around 400.....

Nah, surely not....the chart must be wrong!!! But seriously. its just a point worth keeping in mind and I would love to see updates of your chart in the coming months.