Tom Scollon

Much drama and publicity surrounding the DOW.
And many big questions being asked across the globe on a host of matters.

New order issues which we have not seen before as we are flashing through a new era timeline.

Let’s look at the big picture for the DOW – the monthly:

Dow Jones Futures (EYM-SPOTV): Monthly Line Chart

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What we have seen so far in this retreat is a move back to levels of a year ago.
Not into bear territory as some pundits suggest.
What this chart proposes is an orderly wave four pullback which we have not seen in a decade, for the USA.

Now we have to qualify that by saying that the monthly chart is a very big picture. It is four years out on this chart. That is a long time in this modern era.
Anything can happen in that time frame.

We live in a frenetic world and what may have taken a decade to happen for the last generation, may only take a couple of years.
We truly are moving at lightning pace.

But I do think that monthly charts can give us a glimpse.
Not a complete picture but it does highlight possibilities and times to be wary.

A pullback as shown above would be about 33% or so – with out using retracement tools. That is very orderly in terms of volatility and a long way from going over a cliff.

The VIX – volatility index – is now hitting the headlines again:


CBOE Volatility Index (VIX:CBOE): Monthly Line Chart

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In relative terms it is not too scary either.
Investors are not screaming to the exit.

All of this could change, but for now it seems we are a bit away from any capitulation



Enjoy the ride

Tom Scollon