And maybe Kass, DeMark and a few others are sticking to their guns, but some strategists are just doing the eye roll.
(Critics say the chart takes prices from a historic boom and bust, and compares them to a much smaller boom.) His conclusion: Many were laughing last November but far fewer are laughing now.Ignoring the fact that the scales are off, the fact remains that there is no statistical validity whatsoever to the chart.We explained the flawed logic behind this comparison back in November, the first time the chart made the rounds.In an email earlier this week, Kass wrote of the parallels with 1928-29: While investment parallels desktop 6 update history doesnt necessarily repeat itself, it does rhyme.With the S P 500 now off a mere.7 from its all-time high investors seem exceptionally frightened by this 1929 scary chart comparison.Yet the market over the past two months has continued to more or less closely follow the 1928-29 pattern outlined in that two-months-ago chart.A bigger correction than whats been seen so far?Saut harped on about scale and the apples-to-oranges comparison, and said hed seen this act before.Follow her on @bkollmeyer, more MarketWatch must-reads: Why your stocks will likely fall on Valentines Day Warren Buffett is laughing at you for selling This is a retirement savers worst mistake.Japan is still injecting plenty of cash into the market and an asset selloff, which played a big part in the rally last year, in response to tapering would be way overdone.Cnbc that stocks could unravel quickly in days and have reached an inflection point that resembles the period before 1929.Alpari.K.s, craig Erlam said hes no chartist, but nothing hes seeing now justifies a selloff of the magnitude of 1929.
Nowadays, when traders mention the market being up or down so many points in a day, they are referring to the S P 500.
Then Seabreeze Partners Doug Kass (the man who has taken on Warren Buffett in another context) piped up in support.