If your an investor this chart should sum it all up. Obviously way above the DOW's long-term growth trend. Due to the overextension, the correction will be steep and fast in a similar manner to 2008, which will culminate in a recession as the downward momentum will be to great and we will slip below the long-term trend line.
Looking as the chart, we can see that during the last 3 recessionary and correction periods, the volatility, or maximum price swing channel trends, have all grown in size consecutively. In labeled periods 1 and 2, the price channel was large but ultimately broke to the downside culminating in a recession, however the break was much more aggressive in 2008. From...
This time the bubble is in bank stocks, caused by stock-buybacks and lowered taxes through the trump administration. What will cause the next recession after we recover higher following the coming recession will most likely be housing defaults just like 2008.
The DOW looks to be forming an ABCD break pattern over the past few months but could also be an ABCDE pattern just completed? The strong bounce candle charted last week could see this pattern fall through and we finally test new highs. Tomorrow is definitely gonna be a battle between the bulls and bears.
Very strange how longterm trend lines meet at the point, also notice the longterm trend was just broken through this past week. If a recession happens this is what it could look like, 30% correction needed.
The DOW and other major indices completed a perfect bear-flag pattern on the 15min chart leaving perfect price consolidation today for a major downtick tomorrow back to the lows of mid August. Look for the DOW to either bounce off the 25350 support before heading lower, or to completely break through and who knows where it ends up at close.
TVIX may double in...