A historic turning point?

With the odds stacking up on the side of the bears, John C Burford looks at what would it take to really confirm the top of the Dow's four-year bull market.

I shall continue coverage of the stock markets today because we are at a potentially historic turning point, as I have outlined in previous posts.In my past article on the Dow last Friday, I noted the textbook five-wave sequence down off the 22 May 15,540 high and on Friday, the market was in relief rally mode.

I noted that on so many previous occasions, after a pull-back from an extended rally, the retracements are very often sharp and deep. This is what I wrote last Friday:

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.