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Nearing the Top in Stock Market??

By Robert Johnson

March 25,2010 Technical trading Article #2
Could we be at or near a top in the stock market? I believe the market top will be in no later than the 2nd week of April 2010, and the major bear market that started in Oct.2007 will continue for at least 2 more years into Oct. 2012.

If you do your Fibonacci calculations for  both the Djia and S+P 500 tops of Oct. 2007 by the bottoms of March 2009, you will see a massive bear market rally into the .618 retracement zone, approximately where we are now, and be ready for the next big leg down.

First go to stockcharts.com and get the weekly chart for DJIA. Then take the high of Oct. 2007 at 14,000 and subtract the March 2009 low of 6500 to get 7500. You would then times 7500 by Fibonacci.618 to get 4635. You then add4635 plus the low of 6500 to get the projected retracement High target zone of 11,135. The DJIA should climb to the 11,135 area then stop and sell off sharply.

W D Gann often quoted from the Bible and said ”The thing that hath been, is that which shall be.”“Charts are records of past market movements. The future is but a repetition of the past; there is nothing new.” “History repeats, and with charts and rules we determine when and how it is going to repeat. Therefore, the first and most important point to learn is how to make charts correctly because, if you make an error on the chart, you will make an error in applying the rules to your trading.”  W D Gann used mathematics, angles, charts, and time cycles to accurately trade many years ago. Do his methods still work today in the age of computers?? We shall soon see.

Click Here for the best W D Gann + Fibonacci Trading Software

Robert Johnson    www.aawealth.com