QuantitativeExhaustion

Dow Jones Industrial Avg Held in Neutral Consolidated Position

DJ:DJI   Dow Jones Industrial Average Index
BREAKOUTS & RUN

As we look over market history in the U.S. and other equity markets, we see long standing fits and starts.

  • Ranges in these starts are extremely bullish, seeing breakouts of more than 2000% over 25 year periods. After breakouts markets always and eventually consolidate before they turn there next break.

    Post 1930's Great Depression U.S. market grew by 2405% before consolidating in the late 1950's for 23 years into the early 1980's.

    Top end resistance area is 1,000, which was tested many times over in the 60 all the way through 70's and eventually breaking out in 1983.

    The 80's brought us the computer age, which lead us down the path of internet and micronization along with digitalization into 21st century. Markets priced in our new found improvements resulting in a 2104% market movement 1983-2000.

CONSOLIDATION

Our current equity status is consolidation.

From previous market history, we can see these periods can last a quarter century or slightly longer.

I'm expecting at least another 5 to 15 years of consolidation with a pinnacle trough, which we've already seen (2007-09), to reach 65%. Our top end resistance area is 17,500, which was met already in early 2015 and will most likely be tested once or twice more.

Predicted Breakout won't occur until 2020 or much later, 2030. Given the magnitude of the deep consolidated trough (2007-09), I would assume sooner rather than later.
Comment:
BREAKOUTS & RUN

As we look over market history in the U.S. and other equity markets, we see long standing fits and starts.

Ranges in these starts are extremely bullish , seeing breakouts of more than 2000% over 25 year periods. After breakouts markets always and eventually consolidate before they turn there next break.

Post 1930's Great Depression U.S. market grew by 2405% before consolidating in the late 1950's for 23 years into the early 1980's.

Top end resistance area is 1,000, which was tested many times over in the 60 all the way through 70's and eventually breaking out in 1983.

The 80's brought us the computer age, which lead us down the path of internet and micronization along with digitalization into 21st century. Markets priced in our new found improvements resulting in a 2104% market movement 1983-2000.

CONSOLIDATION

Our current equity status is consolidation.

From previous market history, we can see these periods can last a quarter century or slightly longer.

I'm expecting at least another 5 to 15 years of consolidation with a pinnacle trough, which we've already seen (2007-09), to reach 65%. Our top end resistance area is 17,500, which was met already in early 2015 and will most likely be tested once or twice more.

Predicted Breakout won't occur until 20200.00%% or much later, 2030. Given the magnitude of the deep consolidated trough (2007-09), I would assume sooner rather than later.

Participation

Margin Equity %
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