Posted Feb 11, 2016 by Martin Armstrong
QUESTION: Marty, you said the bulk of any decline takes place in the first two to three units of time. It appears we are seeing that in gold to reach your 1300 gap, how far down do you see the Dow?
ANSWER: That rule prevails on all time levels. The faster we rally in gold, the higher the probability of topping out since this is month two from the benchmark low. Likewise, when we step back and look at the Dow from the quarterly level, here too we should see a decline. However, the technical channel forms around the reversals that we have pointed out, which start at the 12800-13100 zone. Therefore, take out last year’s low and we should see a sharp drop in a rapid manner.
The first quarter of 2016 is the third down quarter from the May 2015 high. Break last year’s low of 15370 and we should see a test of that area confined to the first quarter this year. Watch the reversals and timing targets for when. The computer does a better job than I can do. It is monitoring everything.