Dow tech outlook

We are in a very clear pattern now as the Dow is already testing the Nov. lows in a week 11. we need to make new lows within 4 weeks. A test of the 7000 is imminent and putting it into context with the other indices at least a drop of 10% is very likely hence the trough could be around 6500. We will see a big bounce back thereafter which will also run its time as I see a 3-4 month consolidation. First the early bulls need to get out and hedge funds to get short as the first big wave up is always short covering. Right now another fragment of the global financial system is imploding that’s Eastern Europe who are about to collapse and the banks involved in their financing will take crucial losses. It started with American mortgage but things have moved like a cancer and contaminated other area’s. That’s why there is no way to save the system – other than to print worthless money which will kill the global economy and force us all into a ‘tabula rasa‘ action which will set the clock back to zero.

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~ by behindthematrix on February 18, 2009.

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