Over the last 100 years, the Dow Jones Industrial has topped roughly every 35 years followed by long period of consolidations that lasted for 14/17 years. Within these lateral movements, tops were touched every 3/4 years, while bottoms reached every 3/5 years. Movements extended roughly 50% from bottom to top and from top to bottom. Bottom to top moves lasted instead for about 2/3 years, while top to bottom for 1-3 years.
How it applies to the current economic scenario? Well, the DJI topped in 2000 and 2007. It bottomed in 2002 and 2009. The max/min of these boundaries is 14000/7000. The last uptrend started at around 7000 and is currently at 13000. As a result, time and space are beginning to converge in this hypothetical consolidation model approach.
Dow Jones Industrial Patterns, 1900-2011.
Top to Bottom
1970,1974, 1978, 1982
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