DOWJONES MONTHLY CHART
Its no seceret that Dowjones had borken the four year uptrend which started in 2003. It is a historical observation Bull markets generally last for four years and the Bear market for on an average of one and half year. This cycle largely depends on the underlying macro fundamentals. That is if the underlying economy is more bullish than the uptrend cycle will be longer while down trend cycle will be shorter. US markets they have just ended four years of up cycle and subsequent down cycle which has started may last for one and half year or more depending on the state of underlying economy. Now if we analyze US markets in this light, we may be witnessing the apex of sub prime crisis or we are just few months away form the top (of subprime crisis). I feel that the ongoing sub prime crisis will take at least another eight to ten months to sort out. Looking at charts it is more than certain that Dow Jones will break the support of 11600 and will head further down to 10800 and 10000 levels. This means that there is still a lot more bad news to come form abroad.
Its no seceret that Dowjones had borken the four year uptrend which started in 2003. It is a historical observation Bull markets generally last for four years and the Bear market for on an average of one and half year. This cycle largely depends on the underlying macro fundamentals. That is if the underlying economy is more bullish than the uptrend cycle will be longer while down trend cycle will be shorter. US markets they have just ended four years of up cycle and subsequent down cycle which has started may last for one and half year or more depending on the state of underlying economy. Now if we analyze US markets in this light, we may be witnessing the apex of sub prime crisis or we are just few months away form the top (of subprime crisis). I feel that the ongoing sub prime crisis will take at least another eight to ten months to sort out. Looking at charts it is more than certain that Dow Jones will break the support of 11600 and will head further down to 10800 and 10000 levels. This means that there is still a lot more bad news to come form abroad.
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