‘Massive System Resistance’ in Dow Jones around 11,000

by | Apr 2, 2010 | Larry Edelson | 7 comments

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    Larry Edelson, of Uncommon Wisdom Daily, says that the Dow Jones Industrial Average may very well be nearing a top. We’ll note, for those of you who are skeptical of forecasters, that since the Summer of 2009, Mr. Edelson forecast a Dow Jones top in the 10,500 area. As fundamentals and technical signals changed, so did his forecast, but it seems like he has been right on target.

    There is, as I’ve indicated to you before, massive system resistance – that’s on my mathematical models – at Dow 11,000, at Dow 11,200, and Dow 11,600. It’s very likely indeed that the Dow will pop its head above 11,000.

    But we are in the very, very late stages of the rally off the March 2009 lows and I would not be getting overly enthusiastic here about the stock market.

    While the market may still have a way to go, we, like Mr. Edelson, believe that it is getting close to capsizing. We’ll keep you posted on any significant technical, fundamental or cyclical developments if and when they happen.

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      1. Just cause 11,000 or somewhere in that area might be a top does not mean the stock market is going to “capsize”.  Do you know anything about the stock market?  So it goes down some maybe.  Thats healthy for the market.  The market goes up and down.  No big deal.

      2. Bruno, I don’t think Larry or I are suggesting the stock market will capsize only because it hits the 11,000 mark. A stock market, like any cyclical event in nature goes up and down, and I think most people understand that. Of course, some people, and we won’t name and names, believe the markets, real estate and the price of other assets should always go up.

        The Dow Jones Industrial Average will crash in ‘real’ dollar terms, one way or the other. Currently, there is one primary reason for this so-called “recovery” and that is due to trillions of dollars being pumped into the system by the Federal Reserve, large trading institutions who have the benefit of massive leverage and free money from the Fed, and The President’s Working Group on Financial Markets.

        As soon as stimulus is restricted, and that could be anytime that the Fed tightens their lending, the bottom will fall out of this market. Everything has a life and death cycle, and the stock market is no exception.

        With all due respect, this is not, by any means, a “healthy market.”

        Of course, you’re free to believe what you like, and if you believe that the recession is over and companies are returning to the same healthy growth they have experienced in the past, then you should probably invest heavily in said market.

      3. Comments…..Relative to inflation or gold the true guage of inflation,the stock market has being crashing for the past ten years. So who really cares, it’s totally unrealted to the economy as a whole. The stock market is nothing but a world wide casino ponzi scheme combined. A place where the world mafia drug cartel launder their money, and addicted gamblers roll the dice. The difference between the stock market casino and the Vegas style casion is in Vegas the house can’t always see your hand.

      4. Comments…..I’m not a market expert, but I think this market is over valued and we’re due for a major correction.

      5. I believe the stock market will crash, and worse than last time.  I believe that this current rally from the March 08 lows to DOW 11,000 will be short lived. I believe that the world “elites” are performing a double whammy on us. This second coming whammy will be the nail in the coffin.  This will be the one that drains the pockets of even the “wall street wise”. They will do this to speed up their “one world currency” and “one world government”. Its going to happen folks, mark my word. When it happens they will blame it all on the “debt”. That will be their believable excuse, as well as Obama’s excuse for going along with it.

      6. After watching this very closely for 3 years I will share my thoughts.

        Yes, the market is overvalued. Yes, it should come down to at least 8,000. Yes, it will crash again – only a matter of time. But now is not it. Yes, it may hit all this resistance at these levels and dip but the move down will not be THE BIG ONE. As our esteemed Mr. Katz says, the big money is made in the big move. Well, there is no money to be made off this market right now unless you’re a professional day trader or guru investor like Faber or Rogers.

        I will go with the contrarian view here and say the Dow is headed much higher in the near term, after perhaps a short correction. But the key here is what Mac already pointed out, in dollar terms there will be no new high. So it is all a head fake. Get everyone back in after a disastrous 2008 on their 401k’s and make them feel good about the markets once again. I would not completely discount the Dow getting back to 14,000 before one year’s time due to the massive inflation that is being unleashed.

        We are all being manipulated on a grand scale. Only when the 99% of us think the recovery is real (after the Dow reclaims its 2007 high), and the other 1% of us (mostly those with their eyes open like the readers here) have completely given up on the market returning to some semblance of reality, will the BIG ONE hit. It will take everyone down because less than .01% will expect it. And I believe it is intended that way. I have waited for 14 months now to see the markets resemble reality and it simply hasn’t happened. There is no reason to believe it will anytime soon. Along the way I lost my faith that there can be any justice anymore and I simply tuned out. After all, I saw this whole this all coming almost 3 years ago and still couldn’t figure out how to preserve all my money. So I quit watching my 401k balances and monitoring my investments – what was the point. Thankfully, I realized at some point that what I did was exactly what THEY wanted me to do, the people running the show that is. They want sheer desperation on one end and jubilee on the other. When emotions are running their highest, that is when they will capsize the markets and end the United States economy.

        You don’t have to agree, but so far the markets have defied gravity and reality. Please take that into consideration.

      7. I think  Chris C. said it very well so I will not repeat it.  The market  is rigged for some time now; ‘rigged’ being an undefinable word.

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