I didn't notice the purple trend line before, but it started the 2008/9 Financial Crisis. I see this as heavy resistance, if we get rejected at this trend line then for sure we will have a major economic collapse. If we bust through this resistance line then I can see the market going nuts for 5-6 more years. I tend to think we crash within the next year and a half.
Feel free to comment, I appreciate it and also smash the "like" button! Thank you!
So in order to hit the support zone of 90 either a depression bigger than ther great depression is comeing or 27k dow goes to 1000 and unemployment goes 11%???
Obv im wrong. Help me out here
mattgetsbarreled
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@Bullion_Money, I don't think it would necessarily go to 90 unless that was complete doomsday and life on earth ends lol. I like this ratio because it gives an early sell signal on the market before most people even know we are in recession or the market is going to sell off. If we look at unemployment rate I can still see it going even lower, and the dow may go higher, but I think with the nature of our banking system we are destined for these boom and bust cycles. Therefore there should be a major recession or even a depression and unemployment will rise while the dow falls in value, this will cause the ratio to come down. Maybe doomsday be like 220 but I doubt it.
Bullion_Money
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What does the number represent (7339)?
mattgetsbarreled
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@Bullion_Money, that's just the current price bro. The Dow Jones Industrial Average divided by the U.S. Unemployment Rate.
Obv im wrong. Help me out here