READER'S REQUEST: DJIA

I was asked if we may be trading in a range for the next 10-30 years just like the market did from the 1960's-1980's (green box). I find that scenario highly unlikely. We can see a break in a key support line dating back to the end of the 1929 Crash in 1933. Of course, that support was broken in the 1970's, but they didn't create hundreds of financial weapons of mass destruction. No one knows where the official bear-ending bottom is, but prepare yourself. Just take a minute to look at the severity of the drop (in qtr bars). Only the last leg of the 1929 Crash exceeds our present quarterly decline.

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