DJI MACRO VIEW, M, 37% Consolidation Coming From Bull Decade!
1. Monthly Chart shows the same RSI oversold conditions as the high in 2007 time-frame (79 RSI) that led to the 2008 downturn.
a. Current chart shows the same oversold conditions in 2018 (80 RSI) which are leading to the now late 2018/19 downturn.
b. Retracement was roughly 50% during this past market collapse because support were the 2002/03 levels and RSI of 17.9 indicated severe oversold conditions.
2. After 2008 consolidation the new support level were the lows of 2002/03. (Big Psychological Factor for Traders to Re-enter Bearish Market)
a. Future chart shows the new support level will be the 2015/16 support.
b. Retracement lines up with the Fibonacci retracement of roughly 38% where support from the 2015/16 levels will prevent the market from correcting to the 50% levels of 2008.
The time-span was 518 days during the 2007/2008 retracement.....which led me to conclude that by January of 2020 the market should begin recovering after finding the 2015/16 support and showing oversold RSI conditions.
Mere speculation of course since past performance does not reflect future results, so please don't bet your life savings.
a. Current chart shows the same oversold conditions in 2018 (80 RSI) which are leading to the now late 2018/19 downturn.
b. Retracement was roughly 50% during this past market collapse because support were the 2002/03 levels and RSI of 17.9 indicated severe oversold conditions.
2. After 2008 consolidation the new support level were the lows of 2002/03. (Big Psychological Factor for Traders to Re-enter Bearish Market)
a. Future chart shows the new support level will be the 2015/16 support.
b. Retracement lines up with the Fibonacci retracement of roughly 38% where support from the 2015/16 levels will prevent the market from correcting to the 50% levels of 2008.
The time-span was 518 days during the 2007/2008 retracement.....which led me to conclude that by January of 2020 the market should begin recovering after finding the 2015/16 support and showing oversold RSI conditions.
Mere speculation of course since past performance does not reflect future results, so please don't bet your life savings.
Got the consolidation part right...was off by a few months on the collapse but predicted the end of good times from our bull decade.... No one believed me at the time.