Prices lost ground as the Fed released its new posture; the most important change is another cutback in its monthly open market purchases.
With prices remaining near their highs, we look at the profile of the last bull market top. Note that its a double peak, with prices falling almost three months before the market’s permanent decline.
Given that the earlier, 2000 bull market ended with an identical profile, it is reasonable to assume that the current expansion will face the same double top shape.
Thus, with prices still at their recent peak, any coming decline will be only a preview; the market then will recover before the bear market reversal.
DJIA -.70 percent
NASDAQ -.59 percent
S&P500 -.61 percent
