In January, I ran a chart from the Foundation for the Study of Cycles that predicted where the Dow would go in the first and second quarter. They were pretty much spot on. Here is their latest:
The Dow dropped right into the center trough, bottoming about two trading days early. Anyway, they call for a rally from here but only back to August high levels. That's not that much, is it.
The email this came in was entitled "Election Day Dow and Inaugural Day Crash?" suggesting that the market was not going to do well over the winter months - totally bucking the seasonal tendency.
If they nail it, I guess I am going to have to pick up their software at www.techsignal.com. (I have no connection to them, their product or anyone working there)
Click here for the January blog post.