Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Can A Major Stock Market Top Occur Here?

Stock-Markets / US Stock Markets May 26, 2007 - 12:42 AM GMT

By: Robert_McHugh_PhD

Stock-Markets While the following charts are meaningless for predictive purposes, what they do tell us is we currently have a price pattern set-up eerily similar to the price pattern leading up to the January 2000 major top in the Dow Industrials .


Can A Major Stock Market Top Occur Here?

In 1999, prices staged a dramatic 2,750 point rally over a one-year period, that had folks talking about Dow 35,000, with no end in sight for the glorious bull market. To be bearish was ridiculous. However, the unthinkable happened. In January 2000, a major Bear market started, which lasted through March 2003. Just prior to this historic top on January 14th, 2000, the DJIA rose 2,750 points over a 12 month period, with a significant correction about two thirds the time and price move through this extraordinary rally. Following that correction, the Dow Industrials rose another 1,750 points in a parabolic ascension over three months.

In 2006/2007, since July 2006, we have seen a 2,850 point rally over a ten month period, which has folks talking about Dow 35,000, with no end in sight for this glorious bull market. To be bearish seems ridiculous. About two-thirds the way through this time and price move, a significant correction occurred (late February 2007), which has since been followed by another 1,689 points in a parabolic ascension over three months. The point is, there is historic precedent for a major bear market to start immediately after such a price pattern. Our Demand Power and Supply Pressure indicators will tell us when and if such a bear market decline occurs.

The answer is yes.

“These things Jesus spoke; and lifting up His eyes to heaven,
He said, “Father, the hour has come; glorify Thy Son, that the Son
may glorify Thee, even as Thou gavest Him
authority over all mankind,
that to all whom Thou has given Him, He may give eternal life.” 
John 17:1, 2

Our Memorial Day Specials are Good through May 31st.
Click on the Subscribe Today or Renew Today buttons at the Home Page
;@ www.technicalindicatorindex.com

For a Free 30 day Trial Subscription , go to
www.technicalindicatorindex.com and click on the button
at the upper right of the Home Page.

by Robert McHugh, Ph.D.  
technicalindicatorindex.com

If you would like a Free 30 day Trial Subscription , simply go to www.technicalindicatorindex.com , and click on the FREE Trial button at the upper right of the home page. A subscription gains you access to our buy/sell signals, our Market Analysis Newsletters, Traders Corner, our model Conservative Investment Portfolio, Guest Articles, and our Archives.

Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com. The statements, opinions, buy and sell signals, and analyses presented in this newsletter are provided as a general information and education service only. Opinions, estimates, buy and sell signals, and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. Copyright 2007, Main Line Investors, Inc. All Rights Reserved.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

T.K.Pandian
27 May 07, 09:28
Software Slowdown?

All slowdown centering around Housing Sluggishness has not touched the Software Industry in India, Ireland,Philipines.

There are conflicting views. Slowdowns in US will increase Outsourcing to these countries. Unless, there is a surplus being generated by Corporates every Fin quarter, where there is question of software increasing or sustaining current revenues.

Rgds


T.K.Pandian (Management Consultant)
19 Aug 07, 06:50
Anticipated Subprime Crisis in Property Bubbled Countries

Respected Readers

"Subprime contagion" now experienced in US will soon be experienced in Significantly Property Bubbled Countries namely-UK,China,Ireland,Japan, Australia and Ofcourse India

Though financial Institutions and interested agencies would be unwilling to unravel this Contagion, It is definitive that Banks (Banks based in those Countries as well as other overseas branches in these countries) who lent their money to Property Buyers as well as Homebuilders, are most likely to ackowledge their delinquencies by December'07 and head towards Major Bankruptcy in Banking Sector by April'08

Global Banking Sector and its Apex Bodies,Its Credit Rating Agencies and Governmental Watchdogs are suspected to be responsible for this mess-up of poor lending practices

Global Economic Recession arising out of this global contagion is expected to last for atleast till 2011/12 preempting the size of financial losses likely to be revealed by global banking community in next One Year.

By April'2008, Magnitude of Crisis could be much beyond the size of Asian Currency Crisis in 1997

Rgds

T.K.Pandian

Management Consultant


Post Comment

Only logged in users are allowed to post comments. Register/ Log in