DJIA 2009-2017 Bull Market Update.

 

This is the March 2018 contract at this time, which we will be going to when the December contracts stop trading. I stretched this wave count a bit, but it can still be adjusted at a few other positions. The most important wave count is always the 4th wave and in this case the 4th wave is in Intermediate degree.  The 5th wave in intermediate degree fell apart as an impulse, but another diagonal must be considered. One single zigzag to a new record high would work, but then the entire bull market that started in 2009 must also be a diagonal. 

The 4th wave in intermediate degree has not been moved and at this time, it is still safe at its present location. We already have doom and gloom forecasters, and we will get many more,  when this market gets serious in correcting. Many will get shocked, when the market dips lower than expected. At 21,000 the DJIA will be stepping outside the 2016-2017 trend line, which may barely give us a Minor degree correction, never mind a Cycle degree correction.

There is nobody that knows for sure what degree of a bear market we will get, and at what price level it will finish at!  I have been saying that we could turn at 7000,  while another popular number is DJIA 5000, plus a depression thrown in to crank up the fear factor.  I am very confident that when it comes down to the wire, solar cycle #25 will trash “all” those bearish price forecasts, as the market soars in another 8 year bull market. Markets will always leave the majority behind, as they will be ill prepared when they constantly waste time, figuring how much lower the markets will go. 

When we use the Gold/DJIA ratio it tells us that as of today it takes 18.3 gold ounces to buy just one unit of the DOW.  This is one of the most expensive Gold Ratio readings I have calculated in the last year or so.

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