Stock Market Resumes 2009 Crash- Quick Forecast Update
Stock-Markets / Stocks Bear Market Feb 20, 2009 - 08:06 AM GMT
The Stocks bear market that resumed this week with a vengeance, with the FTSE trading 100 points lower today and the Dow Jones expected to follow suit on the open, this sets the scene for further sharp selling that has already broken the bear market low on the Dow Jones at least.
The selling has caught most analysts and even bearish market analysts off guard, many of whom had been banking on a rally into April based on seasonal tendencies. However the stocks bear market trend in terms of my forecasts for 2009 (20th Jan 09) now stand ahead of schedule as illustrated by the summaries below. This on face value suggests immediate term support which I will cover in this weekends newsletter that will seek to bring the forecasts up to date.
Dow Jones Forecast 2009 - 20th Jan 2009
In Summary , I do not know at precisely what price level the Dow will make a low during 2009, my best estimate at this time is 6,600, but I am expecting that it will mark the start of a multi-year bull market that will eventually make 2008-2009's price action appear as a mere minor blip, much as the 1987 crash appears on today's price charts.
FTSE Forecast 2009 - 20th Jan 2009
In Summary - The FTSE looks set to break below the previous low, however I expect the FTSE to outperform other indices with a minimum 35% move from the years low and finish Up on the year, my best estimate at this time is for the FTSE to trade at 4,600 or higher during December 2009. Also I am expecting that 2009 will mark the start of a multi-year bull market that will eventually make 2008-2009's price action appear as a mere minor blip, much as the 1987 crash appears on today's price charts.
This weekends analysis will seek to update the forecasts in light of subsequent price action, subscribe to our always free newsletter to receive this in your email inbox.
By Nadeem Walayat
http://www.marketoracle.co.uk
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Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 250 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk
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