The increase of the market is not natural. But it is something we could have calculated.
I did Fibo Retracement on the upside with projection based on the simulation of QE1 and real effect, a projection of QE2 and recalibration with FIBO retracement, and QE3 based on the previous 2 .
My very high is 3606 as for DOWI 16606, for CAC40 4500 and for DAX 9700, SMI 8700, IBEX30 10550. Everything above these level are very much excessive.
Now we do enter in a period of consolidation where QE3 will come to an end. If it is not being prolonged delayed, extend, we may stay at these level. Then of course, with the tappering process, and its effect, we sdould come down to a level which reflect the reality of the market, pending the intervention of ECB and the statement of EC PResident Draghi on a possible ECB such as ABS etc.
Having said that Chart NASDAQ 2/2 will show my projections... The downside is a necessary step if NASDAQ is willing to grow in a healthy environment. Otherwise, it is just a virtual increase with no fundamental, and sooner or later, it will crash, and crash hard.