Monday, 2 February 2015

Dow Jones Industrial Average Decennial Pattern predicts strong bull run for stocks in 2015

The following chart shows the paths that the Dow Jones Industrial Average would take this decade if it were to follow the trajectory taken in the average decade of the period from 1900 to 2010; or the average secular bull market decade; or the average secular bear market decade. The chart is based on one that I found at www.pring.com, tweaked by me to show the years of this decade and to highlight where we are now.



Averages of past decades are all well and good, but what about now? The daily chart of the Dow illustrates that the broader trend is currently up, with a short term corrective looking down trend present from the December peak. The market is testing dual trend channel support, below which the broader up trend would be in doubt. Failing a break lower, respect the broader trend, and respect the potential of the Decennial Pattern. Chart includes after hours trade.



ASX 200 bursts higher through dual trend line resistance

Daily chart shows the ASX 200 bursting higher through dual trend line resistance. A break higher through the August peak would cause reassessment of the bearish big picture scenario I have been illustrating. Includes after hours trade.