Originally posted by GreenBicMan
Take a look at a chart from like 1930
This same exact formation has happened many times.
In fact one formed from 35-45 - same thing, then the market took off
This doesn't have any historical prescedent, so you will have to be quite convincing.
Actually, no, it doesn't. CLose analysis of mid-30's shows again a head and sholders formation, leading to a low just prior to WW2.
Likewise, you also have the other style of collapse, sometimes called a "Ted Heath Collapse" as the classic one was from 1970 to 1975 mainly under
the Ted Heath Government in the uK. In that sort of collapse, everyone cannot believe that it can get any worse and has good grounds ot say so, but
it just does. Ted Heath's Governement iwas one of the most "accident prone" Governments of all time. First, he had a strike by the power station
workers so industry had rationed electricity at a time of booming demand. Once he had resolved that, the Israeli's and Arabs went to war resulting
in no oil for car, trucks or power stations. When that finanlly ended, the coal miners went on strike. So Ted went to the countryin a General
Election saying "Who runs the country, the miners or me?" He won way more votes than the opposition, but the opposition Labour Party managed to
target "marginal constituencies, so Ted Heath won few seats by a big margin whilst the Opposition won lots of seats by a tiny margin.
That was a Ted Heath collapse, and is NOT like now. In this, the recovery is pathetic at best as public debt sors out of control. It is a simple
matter of how long before everyone suddenly comes out of denial which will, I believe, be sudden and dramatic.
If the dow hits 3000, its over for corperate America... 
