Harry Dent, of HS Dent Investments, alerted subscribers this morning to a potential change in market conditions. As outlined in the May 2009 and June 2009 Economic Forecast, cycles are pointing to a downward correction with a possible turnaround at the 8225 level on the Dow Jones. Note that HS Dent has not issued an all-out “Buy” signal as of yet. Another possibility according to Dent’s forecasting model is a low of 7800 before a reversal in the downward trend. Short term traders should watch cautiously for trend changes. Earnings season starts this week with Alcoa and Chevron reporting, and if April 2009 is any guide, we could see “positive” reports from these companies.
Harry Dent Update:
Stocks should open this morning in or near our buy target range of 8,175-8,225 on the Dow.Â We are likely to get a bounce from here, but our oscillators suggest this correction is not over yet.Â
Other notables from the July 6 update and recent monthly forecasts is Natural Gas, which is approaching a sell stop signal as it has dropped considerably in the last 2 weeks. Dent has noted recently that oil may see a correction back under $60, and then a possible swing back up to over $100, and as high as $140 a barrel, before crashing down around the time of a broad market crash in late 2009 through late 2010.