Correction time, aw sheah.
I’m making the prediction that the DJIA is about to correct by about 500 points over the next couple months. Expect it to drop down to around 13,000 and possibly down into the upper 12,000’s.
There are a number of technical indicators that suggest this scenario. First, the RSI and MACD are both pegged at the max on the weekly chart. Second, we’re heading into the real summer period, post memorial day. Third, there’s evidence of a bearish divergence pattern on the DJIA daily chart. Fourth, there’s a nice bearish candlestick pattern forming on the daily chart as well.
I could be wrong, but I figure I’ll draw a line in the sand and see if I’m right.