djia 8000 ?

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Could the DJIA reach a level of 8000 in the next few years? Yes, it could. I personally think that as inflation raises the prices of everything else, it will also raise the price of stocks, but there is a scenario whereby the DJIA could reach 8000 within the next 4 or 5 years. How could this happen? Let's look at the attached chart. It is a 5 dimensional look at the DJIA from Aug 2001 to Feb 2008. Notice the large columns of red near the left side of the chart? These represent extreme negative values of estimated 2d derivatives for the trends where the color red is plotted. These red columns often occur at the beginnings of positive MetaTrends. See the beginnings of the positive MetaTrend directly above the red columns? This is indicated by the '+' all close together forming a checkerboard hatched pattern just starting in a group of horizontal lines formed from '-' all close together. Positive MetaTrends form 'humps' in the price line that often return to where they started unless some other simutanous MetaTrend carries the price higher or lower. Yes, multiple MetaTrends operate at the same time! So, if this positive MetaTrend, which began about the time of the 9-11 tragedy, returns to its start point, which often happens unless another MetaTrend begins, then the DJIA will return to about 8000. How can we tell if that is happening? See the purple ellispe on the right side of the chart about mid way between the top and the bottom of the chart? This ellipse encloses a 'gap' between two positive MetaTrends. If this gap does not narrow and close itself thusly terminating the negative MetaTrend being formed by the horizontal lines, the DJIA is headed back toward 8000. I think the gap will close, but that is really only a guess. What counts is the data. We need to watch that gap for the real evidence of what the DJIA is doing. I post an updated version of this chart weekly at my free website which can be clicked thru to from my profile page. There is also a further explanation of this kind of chart there. For now, it is not necessary to really understand these charts as to the direction of the DJIA, if you watch this gap.