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DOW Jones Long Term Chart Outlook

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pennies2007   Thursday, 12/08/16 06:47:07 PM
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DOW Jones Long Term Chart Outlook

Well gang, it's been a long time coming but the market is finally moving up into the ecstatic "it's gonna go up forever" mentality again. Retail is finally bullish again on the overall market perspective and we've got crazy calls coming out about DOW 25,000, etc...same old garbage we always see around long term tops.

Looking at the longer term charts, the DOW has moved into the 2nd leg of a larger corrective series called an expanded flat in Elliott Wave terminology. These are tricky waves because each leg actually extends beyond the starting point of the previous wave leg. So Wave B extends itself out and the final Wave C extends itself beyond the previous Wave A peak, either up or down.

In this case, the last big recession saw the market complete a 5 wave series to the downside. Now, we're in the final throws of a large 3 wave correction topside that made new all-time highs. The next leg down is gonna be seriously ugly though. Since the C wave down has to extend beyond the previous lows, that means the previous lows around 6000 are gonna get smack-gobbered. The market could actually work it's way all the way back down to 1000 or less...yes, you heard that right...1000 or less. Basically, all of the wealth accumulated in the market since the early 70's would vanish.

But, after all of that nonsense is over with, we're gonna embark on a new bull-market that will last for many years. Hyper-inflation, massive upside gold prices, etc...you get the idea.

Here tis...

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