Will Dow fall to 27k this year?
My outlook for the stock markets this year is bearish and, in fact, I have expected a fall for around 6 months now. Although it didn't happen, YET, let's try to see the bigger picture and understand what's happening.
For the past 9 months, Dow30 was trading in a range. You may argue that we have higher highs in place, but this, in my opinion, is window dressing. In fact, Dow was trading at an average of 35500. Yes, indeed, 34k support held for 6 times, but recoveries after touching it are anemic, highs are marginal and this support held not because there was much buying power there, just lack of selling by big players.
My true opinion is that in this past 9 months we have had a large distribution, when " they" are done distributing is hard to say though...
In conclusion, I expect a drop for Dow (and indices in general) this year, and my target is 27k
