The adjustment noted on September 5, 2022 for a close of 15,908 (+/- 4%) [15,271.68 to 16,544.32 range] with a decline in the stock markets accelerating in late September 2022 and collapsing going into October and November 2022 is based on the following.
- The Dow has moved past point 8 of the engrbytrade Eight Point Trading ModelTM and is in a similar position to where it was in September 2008.
- In the charts shown above and below, points of origin for a four year time frame using a 20.65 degree drop below the X axis and originating from February 23, 2009 and February 9, 2018 indicate the Dow is expected to have a significant decline in 2022. It is possible the 2022 decline could roll over into the first quarter of 2023, but additional data will be needed to make that determination. The scale of the decline in 2022 will be proportional to that of 2008.
- Daily calcs identified significant (Market Maker) selling occurred in November 2021. This was followed by a move down to the 30,000 range with very little buying during this decline.
- As the Dow moved up between July and August 2022 daily calcs identified significant (Market Maker) selling again prior to rolling over indicating a move to lower levels.
Stock charts courtesy of StockCharts.com.
