Which part of history will DJIA repeat?

Depending on one’s worldview, this glass maybe half full or half empty. If Dow Jones Industrial Average is merely doing a healthy correction like any one of those between 2010 – present, the lowest it will go is a 20% retracement or a 20% discount from the top to entice one to buy something.

DJIA corrections between 2010 - 2015

DJIA corrections between 2010 – 2015

If DJIA is going to crash like the collapse of the Tech Bubble and the Subprime Crisis, then history tells us that nothing less than 40% off the top will do.

2 periods of major DJIA corrections: Tech Bubble (2000) and Subprime Crisis (2007)

2 periods of major DJIA corrections: Tech Bubble (2000) and Subprime Crisis (2007)

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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