Patterns, Predictions, and the Correlation Fairy
In November 2009 I noticed a pattern—the S&P 500 index was tracing out a pattern uncannily similar to the S&P chart exactly six years previous. In the four years from April 2009 through April 2013, the average difference between the S&P 500’s closing value for the same day 6 years previous was 3% and the yearend values were within 1.6%. Using this correlation I predicted …