DOW JONES is in an expansion Cycle and people still shorting it!

Dow Jones on the 3M chart gives you the clearest picture you can get.

Every 10-15 years it consolidates inside a Megaphone (fundamental reasons like war, recession etc) and then an expansion phase follows.

In the 90s this expansion phase was extended due to the uprecedented boom of Dotcom.

While the index is on its expansion phase, the RSI trades inside a Falling Wedge, which warns of the loss in bullish strength and eventually leads to the new Megaphone.

Right now it is obvious that we are in an expansion phase. Needless to say it will last for as long as the MA50 holds.

The real question is will it be short like in the 1950s or extended like in mid 1980s-90s?

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