The time points projected in the previous article DOW JONES Major High September 2009 have been passed, and in analysis terms, specifically Gann analysis, the Dow Jones would be described as being overbalanced in time – note the time points mentioned in that article, still all proved to be significant points. The target price level mentioned in that article has NOT been hit yet, 10,360 points, and this is the target level to break (by a significant amount) in order to prove that the bear market has ended.

Due mainly to fiscal stimulus, currency devaluation, and continued pump-priming by US (and worldwide) government, the current rally has over-extended in time, by a little. The crucial 50% retrace from Exreme High to Extreme Low (at 10,360 points) however, has not been breached, which means we are still technically witnessing a rally in a bear market. This will be noted as the biggest rally of the current bear market on the way down.

All the stimulus and fake value (currency) creation in the world, can not stop the inevitable unwinding of world markets – fuelled by rapacious greed and excessive debt – the accounts must eventually be balanced. The attempts by government to avert potential disaster, have only set us up for a bigger fall. The rebalancing will be more severe, and much longer in duration, quite likely leading us into Global Depression.

Significant time points to look for a reversal:
October 26-28, November 20, December 8-21

It is extremely unlikely that the Dow Jones will go above 10,360 points by a significant amount. If they pull off the miracle of the century and it does, then we will likely see a tremendous devaluation of currency followed by unbelievable inflation. Gold is the investment of the wise, and will continue to rise in value considerably into the future. If you have substantial money to invest and don’t want to see it eroded by currency devaluation (which is happening anyway), buy Gold now, and hold it.

See also: DOW JONES Major High November 2009

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