The Dow Jones Industrial Index has been following a hyperwave formation since the breakout of resistance (phase 1; 1000) in 1982.
The trend lines of each phase have held firm, without a clear and maintained breakdown - until the recent break down of phase 4.
The blue bar pattern is taken from the DJI during the Roaring 20s and subsequent great depression. This was also a hyperwave formation and resulted in a rapid and severe phase 5, followed by a phase 6 bounce and a prolonged phase 7 nose dive to reach levels below the phase 1 breakout.
The recent breakdown of the DJI through phase 4 coincides with the recent bear trap in bitcoin. I believe that the two are strongly correlated, due to the opposing nature of an inflationary economy (DJI) and a fixed supply currency (BTC).
I expect BTC and the DJI to now establish an inverse correlation, with the end of phase 5 in the DJI corresponding with the peak of an impulse wave in BTC by the end of 2019. Similarly, the peak of the phase 6 bounce in the DJI should mark the trough in the corrective phase of BTC at the end of 2021. Finally, the prolonged phase 7 of the DJI should coincide with a prolonged and extreme final impulse wave for BTC, ending approximately by 2030.
The trend lines of each phase have held firm, without a clear and maintained breakdown - until the recent break down of phase 4.
The blue bar pattern is taken from the DJI during the Roaring 20s and subsequent great depression. This was also a hyperwave formation and resulted in a rapid and severe phase 5, followed by a phase 6 bounce and a prolonged phase 7 nose dive to reach levels below the phase 1 breakout.
The recent breakdown of the DJI through phase 4 coincides with the recent bear trap in bitcoin. I believe that the two are strongly correlated, due to the opposing nature of an inflationary economy (DJI) and a fixed supply currency (BTC).
I expect BTC and the DJI to now establish an inverse correlation, with the end of phase 5 in the DJI corresponding with the peak of an impulse wave in BTC by the end of 2019. Similarly, the peak of the phase 6 bounce in the DJI should mark the trough in the corrective phase of BTC at the end of 2021. Finally, the prolonged phase 7 of the DJI should coincide with a prolonged and extreme final impulse wave for BTC, ending approximately by 2030.
Note
Very Bearish SMA interaction below phase 4 line. Next week should be very interesting. Note
Note
The Above screen shot was from XBTUSD, not the DJINote
Duration of hyperwave = 45 Years = Kondratiev Cycle (45- 60 years)
Note
Market open below phase 4 trend line, a bearish sign. Note
The German Stock Index is also following a hyperwave formation with a recent breakdown of phase 4. This is a global bubble that will affect the world when it bursts.Note
Note
Reversal years in the S&P 500 (2000; 2007; 2018)January = confidence (green)
September = peak (yellow)
December = reversal (red)
Note
A better title for the bubble would be the "Fiat Currency Bubble"
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.