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 of all decades 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 in the bottom horizontal scale.
Thursday, 13 August 2015
Dow Jones Industrial Average Decennial Pattern suggests US stocks should close 2015 up strongly from 2014
Daily chart includes after hours trade and shows the ASX 200 rallying from a bullish false break of short term trend channel support. Of course, I believe the big picture is bearish, but I will keep an open mind, and at the least won't be surprised by a rally in coming days or weeks, especially as the S&P 500 rallied from key support in the Wednesday US session.