The patterns of the S&P-500 Index may be repeatable in the future. Pattern recognition systems can help to find similar patterns easier by classifying them. After selecting similar patterns, it is possible to use them to predict the future pattern.
Investment Analyzer (IA) by Addaptron Software has a few extra features for a short term forecast. To predict prices of the selected stock (index) using pattern similarity. IA searches for the pattern from the internal database by scanning all historical data. Depending on degree of similarity, it ranks all possible matches within given historical period and then combine them.
The chart below has been plotted using IA pattern similarity feature. S&P-500 index prices have been used as input; the output is prediction for September 13-24. A possible prediction is a slight uptrend and then more downtrend. However, technical prediction may be different if something fundamental happens.
Nothing in this piece or blog should be construed as investment advice in any way. Always do our own research or/and consult a qualified investment advisor. It is wise to analyze data from multiple sources and draw your own conclusions based on the soundest principles. Be aware of the risks involved in stock investments
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