Posted Nov 3, 2015 by Martin Armstrong
Yes, there were ONLY two possible patterns (instead of countless): (1) the slingshot where you penetrate the previous year’s low and then blast to new highs, or (2) you base until the Gold Benchmarks and then enter the Phase Transition. Either way, new highs were ahead. There was no indication of a crash to some 50% to 90% decline since equities had to become the alternative to banks and bonds. The reduction in supply as companies buy back their shares made this more possible.
The fact that the DAX bottomed with the ECM, and DID penetrate last year’s low and then rallied, shifted the potential toward a Phase Transition next year. The Dow has been bouncing between support and resistance reversals quite nicely.
The reversals will confirm the next move.
Tags: DOW, Phase transition, slingshot