Last August, the Chinese stock market tanked, and the rest of the world followed it down. The Dow dropped almost 10% but then rebounded. This chart shows the Dow bouncing off its long term trend line, but we are now back to that green trend line.
According to technicians, if the Dow continues down, we can expect another scary bear-market slide. If it bounces off the green trend line, the bulls are going to run hard — a “rip your face off” stock rally.
Let us pray . . .
Frankly, I just want to know how a silly chart like this can factor in the price of oil, Iranian relations, Fed actions, Russian invasions, a do-nothing Congress, terrorist attacks and everything else?