the last time we blogged about the GDOW we saw a pattern and the AB=CD and warned of another possible move down … we got a 36% correction from the AB=CD. what is fascinating, is the correction from 2007-2009 was related to the most recent correction by … yup, 1.618. if you take the correction from 2018-2020 and multiply it by 1.618 you will get the 2007-2009 correction in percentage terms.
anyway, in another 10% or so we are going to have a major test for the Global Dow.
note, from our last post in April we correctly ID’d the ‘roughly’ 17-18% move (corrective) up in the GLOBAL DOW and I have annotated “same pattern” to simply show this chart acting like the 2007-2009 period, thus far. the key here is the long term LOG trend line that is coming up from the 2002 lows. would expect, based on the monthly candle forming right now, that it should get tested in the coming weeks. breaking that trend line (MONTHLY close below) would be an ‘other’
as for the US DOW, that’s setting up a totally different and, potentially, bullish pattern so we’ll have to put it all together over the coming weeks.