Entering the October Massacre of 1978 Pattern

As of today, this month's Dow chart pattern has grown more similar to September of 1978. The similar pattern chart pattern has moved from most similar position number 1 to number 2.

The two month chart pattern analysis results are extremely weak for the Dow also, finding only 53% of similar charts with an uptrend.

This month's similar chart patterns are strong at 78% BUT its top similar chart (#2) is extremely similar to September of 1978, a nice run-up, a slide (we are here), another run-up, and the historic -- S&P dropped 14% in October; too close for comfort. Then there are the parallels to the dollar:

"Between January and October of 1978, the Dollar lost fully 25% of its value against a basket of the currencies of its major trading partners. By early 1979, due to this precipitous fall, the demand for Gold was overwhelming the amount that the IMF/Treasury dared supply, and the Gold auctions came to an end." -- The Early Gold Wars

Keep in mind, as quickly as it evolved into similarity with this pattern, it can exit just as quickly, one day's close can do it. The good news is, the 3 month chart pattern is at 92% probability of an uptrend at 5%.