Lower trend line support connects 1932 bottom, WWII bottom, 1974 bottom, and 1982 market bottom (and beginning of super bull market). So considering currency shifts & gold standard, inflation/deflation, political unrest and war, major booms and busts, and decades of plowing steadily along, this line has set the low bar.
Prior to the March rally, we were spitting distance away from this line. If we fall back to the low 700’s again this summer, the mid 500’s will definitely be my target. It will either be a once in a generation bottoming opportunity, or the sign of a major breakdown of US economic might.
I think its also safe to say the mid line is a pretty good place to expect some significant weakness if we do continue to rally up from here this year. It could take a year or 2 to get there.
Also notice how the 666 low is almost precisely a 61.8 % retrace from the 1982 low (100) to the Oct 2007 (or Sept 2000) highs. Pretty interesting.
Prior to the March rally, we were spitting distance away from this line. If we fall back to the low 700’s again this summer, the mid 500’s will definitely be my target. It will either be a once in a generation bottoming opportunity, or the sign of a major breakdown of US economic might.
I think its also safe to say the mid line is a pretty good place to expect some significant weakness if we do continue to rally up from here this year. It could take a year or 2 to get there.
Also notice how the 666 low is almost precisely a 61.8 % retrace from the 1982 low (100) to the Oct 2007 (or Sept 2000) highs. Pretty interesting.
