It is no mystery that we are in an interesting market right now, which is somewhat more unpredictable. The answer to much of this is that we will be better off in the long run, or we are still in a upward trend long term, and perhaps there is some truth through that. The problem I find is that nobody can really determine what long term is.

Everybody has a different idea on what long term means to them. For example, some might think of it has 10+ years, others might think 5 years, and some believe 6 months. If I am 5 years old, then perhaps I can wait 5+ years, but is that a reasonable time frame for most people. Anyways, lets look a some charts of the industrial average, with time frames of 5 years, 1 year1, and 6 months, and perhaps we can find out what is really happening.

6 Month Time Frame

By looking at the 6 month average, the INDU is sitting near the bottom point of the current trend, which has been creating lower lows and lowers highs. It will be interesting to see if the market bounces off the support (bottom white line), otherwise, we will obviously be heading lowers. Don’t worry though. We will be fine in the long term.

1 Year Time Frame

During a 1 year time frame, the market experienced some news highs and huge growth; however, that all died down. After a complete year, the market has officially headed negative. Again you can see the INDU sitting at a level of support in this time frame. Will it bounce or will it drop? It doesn’t matter cause in the long run we should be good.

5 Year Time Frame

You can easily see the overall upward movement for the past 5 years; however, has you can see we are at the point of support for the upward trend. If the market breaks this, then the industrial average could potentially drop down to 10,800. That definitely wouldn’t be a pretty site and how much longer can people wait.

Conclusion

Although I put on a pretty bearish stance, I am actually a very bullish investor. I am pretty confident that investors won’t let the market drop down to 10,800. I just don’t see it happen, but there will be plenty of rough paths along the way. The chart below is my prediction for where the market is headed in the next 5 years…

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