From the Monthly chart of the Dow Jones Composite Index, I’m seeing a “dinosaur” formation from 1999 to the present (first the tail, then legs, neck, and finally the head and nose — where price is now). We all know that dinosaurs became extinct…my gut tells me that this present dinosaur bull run is not sustainable — and likely due for a very big fall — possibly in a 2-tier drop (big drop, small bounce, and big drop).
There are three reasons why major support lies between 4733 and 4900 on this index, which, technically, could be hit by December 2015…there is a tri-Fibonacci confluence at that spot (denoted by the red rectangle).
Watch out for the “big freeze” (bull squeeze) by Christmas.
