Mini DJIA Intraday Record High And Decline Update.

The Mini DJIA soared to a new record high and ended up a bit above 24,700 before the DJIA started to tumble.  One little stumble doesn’t mean much just yet, but for a bigger, more serious meaning, the DJIA has to slice through my bottom trend line with a sense of purpose or conviction. 

When a bull market corrects it sends fear into the minds of the bulls and they start to question everything. Many know this is going down, but they figure they can get out in time to save their trading accounts.   One expert says that the Nasdaq can still rocket to 8000, what price  do you think the DOW will go to?  I doubt very much that the Nasdaq can soar to 8000 and the DOW crash down to 8000! Plain and simple the extreme rosy outlook has everybody committed already, in other words,” Who is left to get in”?  Where are those greater fools hiding, to give present market bulls the huge gains, that the experts are forecasting to happen?   When all the analysts and smart financial reporters see nothing but good times ahead, then this bull market will go south.  Euphoric bull market peaks are the breeding grounds for bear markets, and until we understand this then we will always get caught up in the bullish sentiment of the day. 

There is a big chance that Bitcoin and other Cryptos could crash right along with all the other big indices, which will not be pretty. 

At this time the DJIA has to dip well below every bottom you see on the chart above, to wake up the bulls.  How these markets have been behaving, you don’t want to underestimate the ability for this market to spike higher. Maybe it will just screw around for the rest of the year, as markets can reverse at month’s end, or in this case at year’s end. 

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