Dow: Setup for Deleveraging

Based on the current market structure, it seems Market Makers are taking Trump at his word to follow through with another Government shutdown in mid-February. Historical data and model adjustments show the Dow is expected to turn down after February 18, 2018. This decline will be much worse than what was originally expected and could last for several months. Preliminary indications show the Dow reaching the 13,000 range. Ray Dalio explains this deleveraging process in “A Template for Understanding Big Debt Crises”. See Ray Dalio’s explanation: Current market cycle is similar to the late 1930’s.