This is just a rough drawing, if i find time after the crypto finishes popping I may do a more detailed look at the DJIA (or i may do it tonight lol) but I just wanted to put something on paper down to start with....Enjoy!
Just taking a look a few of the most glaring problems on the yearly chart we see significant Bearish divergence on the RSI coupled with an average volume line that has flattened out despite a huge rise in price. Also when looking at volume we can see that MOST of the rally since 2008 has taken place on DECLINING volume (however last year the market volume did spike with the election of Trump which can be seen as a black swan type of event.) So, delining volume with rising price + significant bearish divergence on the yearly = major probelms to come imho....
People who try to time tops in markets rarely succeed, even if you know something that other people don't. 2008 was a good example as people attempted to short years before the housing market collapsed. Best to stick with the trend until it bends.
@kickflip360, makes alot of sense what you say...I am not trying to call for a top this year or next or in 3 or 4 I am simply saying based solely on the chart the DJIA is in a MAJOR bubble and is at some point going to lead the whole world into ALOT of pain. Now, this is just based on the TA, once we include the fiat money system, massive derivative markets, EZPZ credit policies and the natural tendency of man towards greed...then I think there is an even stronger case for eventual disaster...just my thoughts...thank you for your comment
I'm maxing out my Margins on long positions. We are going to go full Bull for the next few years IMO. Indices are effected by a lot more items than just speculation. The weakening dollar, the increasing population of the USA/World, and general growth of international operations account for the massive USD growth in American companies and their record level profits.
@mlsv2f, good stuff man, be careful bc "I'm maxing out my margin accounts" is exactly what starts to get said at the top of a classic bubble...look up the classic bubble chart and you will see what I mean. anyways, I am not saying you are wrong this bubble has been created over 100 years who am I to say it can't go on another 5? All I know is there is pain at the end of the tunnel...good luck