Monday Oct 3 2022
Bob Farrell had one rule which was that markets eventually return to their mean over time. .
https://school.stockcharts.com/doku.php?id=overview:bob_farrell_10_rules
Major indexes have not touched their 200 bar MAs since March 2009. What would that mean if it recurs and it looks like that is happening.
Daily INDU
The Industirals have already fallen under the daily 200 bar MA. It now stands at 33,207 and on Friday we hit28,725.
January 5 close was 36,400 so we are down 7,675 points
Weekly
Friday's close took INDU under the 200 week MA at 29,768 on the 28,725 close. So two important measures have already been met just nine months into this year.
Monthly
The 200 month MA is 18,339 or 10,386 points lower. Notice that is about where the covid low of 2020 bottomed. that is also a fourth wave low from the 2009 bottom os there is additional reason to see it tested. If we can drop this far this fast that monthly target could happen by Fall 2023. And there are no end of
potential world problems to provide a real world impetus to this technical picture like Putin using a nuclear weapon, attempting to freeze the EU this winter, emerging market debt collapse, did Archegos signal more financial collapse around the world, probably.
In fact the Percent Price Oscilllator used in the illustration of his rule is suggesting a return to just that level, ta
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