Jan 20 2008
Dow Jones ($INDU) Chart – January 18, 2008
I’m charting the Dow ($INDU) again today. I read an interesting article in Barron’s this weekend that highlighted the longer trend of the overall stock market. The short version is that we overbought with such great disregard for the norm that we were due for a good pull back to rejoin the longer term trend. The theory is that the markets (I’ll use the Dow as an example for the rest of this piece) are still ringing out the excesses of a few years ago, so we were really due for a longer sideways market, if not a harsh down turn. We’ve had a mix.
I went back 20 years to chart the Dow and the trend was so off starting around 1995 that I shrunk the chart up a few years and settled on what you see above. What I see is a worst case possible crumbling down around 10,000, [...]
Original post by Alex Fotopoulos