Permabears in particular will find this hard to believe, but the Dow Industrial Average could levitate a further 2336 points before it hits something solid. Even some bulls might find the 23317 target shown in the chart (see inset) a tad optimistic. But charts don’t lie, and in this case the force with which the Indoos impaled the red line, a midpoint Hidden Pivot resistance at 19343, makes a run-up to 23317 a good bet as far as I’m concerned. Of course, I could give you a dozen good reasons why the blue chip average would be more fairly priced at 10,000. But I have to keep reminding myself that all the ‘good reasons’ in the world have in no way impeded the progress of this epic bull market since it began in 2009. We’ll lay out some shorts at the pink line, the pattern’s ‘secondary’ Hidden Pivot, nonetheless, since it is a logical spot for the bull to reverse, if only temporarily. In the meantime, we should not presume to understand what’s on Mr. Market’s nasty mind — other than that he will fool most of us at the top.
Why This Permabear Thinks the Dow Could Rally Another 2336 Points
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May 20, 2017, 2:31 am
Based on 3 different forms of market analysis including impulse analysis which all seem to confirm each other I see the DJIA somewhere in the neighborhood of 25,000+ right before the big market crash, but i have to dig up some charts to get a solid figure. My estimates are that this should happen sometime October 2019 but really no later than 2021. I pick odd years because the past three largest stock market crashes in U.S. history all happened on odd years. My primary reasoning is that the market will then require about 10 years of consolidation in order to build a base large enough for its next leg up in 2031-2032 after the U.S. defaults and everyone goes into the equities market for safety. I pick 10 years because historically the DJIA consolidates for roughly 9 to 10 years after a gargantuan market crash. This sort of timing kind of dove tails into Martin Armstrong’s analysis as 2032 being an important date. Mr. Armstrong does not necessarily make the same claims however these are just my own speculations.