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Sunday, June 23, 2013 12:26:31 PM
Amateur Investors Weekend Stock Market Analysis (6/22/13)
http://www.amateur-investor.net/Weekend_Market_Analysis_June_22_2013.htm
As I have alluded to before back in the 1960's and 1970's the S&P 500 formed a large Broadening Top pattern. Once the final 5th Wave completed a large correction followed (-48%) in which the S&P 500 eventually tested the lower trend line connecting Waves 2 & 4 by late 1974.
Meanwhile taking a look at the chart of the Dow one could certainly argue that a similar pattern has developed since the late 1990's as the move up from the 2009 low would be the final 5th Wave.
If the Dow were to eventually test its lower trend line connecting Waves 2 & 4 that would lead to a potential drop back back to the 6000 level. Overall that would be a 60% correction from the most recent high. I know some will laugh at this potential projection but this pattern has occurred before and shouldn't be ignored.
http://www.amateur-investor.net/Weekend_Market_Analysis_June_22_2013.htm
As I have alluded to before back in the 1960's and 1970's the S&P 500 formed a large Broadening Top pattern. Once the final 5th Wave completed a large correction followed (-48%) in which the S&P 500 eventually tested the lower trend line connecting Waves 2 & 4 by late 1974.
Meanwhile taking a look at the chart of the Dow one could certainly argue that a similar pattern has developed since the late 1990's as the move up from the 2009 low would be the final 5th Wave.
If the Dow were to eventually test its lower trend line connecting Waves 2 & 4 that would lead to a potential drop back back to the 6000 level. Overall that would be a 60% correction from the most recent high. I know some will laugh at this potential projection but this pattern has occurred before and shouldn't be ignored.
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