Friday, July 2, 2010

Technical Observations

It will be a matter of time before the confirmation of the suspected head and shoulders formation is decided. Here is another perspective of what might be brewing, instead of an assertive move to the upside or downside. Pretend that history rhymes. Here is a chart from Chart of the Day showing the history of the DJIA over select periods, immediately following two "massive bear markets", defined as a decline of 50% or more. The third line shows the DJIA following the less than massive bear market that ended in 2002.