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| US Stock Market Long Term Outlook - Bear Market 2011-2013 |
Stock Markets decline have found resistance, thus creating a bottom, of recent sharp decline.
The severity of this decline has only two comparison in the recent history since last depression of 1930's. First was October 1987 decline and second of September 2008, and now we have August 2011 (Next such a sharp, even sharper, decline shall occur in the month of July 2012).
Markets current price behavior depicts that, US Markets have started a "GIANT" topping pattern. It is Head and Shoulder Pattern, spanned over the 14+ years. That shall mean if it materializes then, we shall have a devastating, countries destroying stock market decline in the future. That is the long term case scenario. There is small likelihood that markets might develop a expanding and yet a "topping" pattern, thus, attempting to eclipse the recent highs. However, as it seems, it is less likely.
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| Markets making a near term bottom 8-12-11 |
Markets have expanded since 1987, in form of a 5 waves up trend, Where second wave started at the bottom of 1987, and culminating the 3rd wave at October 2007 top. 4th wave was the low March 2009, which was exact 61.8% retracement of all of the bull-run from a1987-2007 (a twenty year cycle).
Market shall have "very important swing" in March 2012 (most probably a bottom). Markets shall either go down into the November 2011 or even November 2012.
However, for now, Stock Markets have put in the near term bottom and it is perfect wave pattern bottoming process. Markets are potentially going up-to S&P-500, first level of resistance of 1,20-1,225 and then next target is 1,253-1,260. and Yes, World's stock market will be following suit.
