Good afternoon, Gentlemen! Since I finished reading a very intriguing book that deals with the markets from a very long term point of view, I did some research to find clues about how the markets may or may not behave in the not too distant future. Here are my results. Throughout the 20th century, the markets could be parted into several distinct phases. 1906 - 1925 Sideways market 1925 - 1933 New economy and burst of the bubble 1933 - 1966 post-crash consolidation and cold war economic expansion 1964 - 1983 Sideways market 1983 - 2000 Newer new economy and burst of the bubble 2000 - ? Sideways market So, for two times during the 20th century, the markets (as represented by the Dow Jones Industrial Average) traded in ranges for nearly 19 years. Several similarities between these two phases and the current status quo are striking. Here's a chart of the first phase: (Click here if image isn't displayed properly) During the early 20th century, the Dow traded between the 100 and 75 point levels. These were the focal points the bulls and bears gathered at. The second sideways market took place between ~1964 and 1983: (Click here if image isn't displayed properly) Again, this market lasted for about 19 years and again, it's range was defined by multiples of the previous sideways market. The focal points were the 1000 and the 750 point levels of the dow. The big question now is; are wie in the midst of a new sideways market that will last for about 14 more years? Let's have a look at the chart: (Click here if image isn't displayed properly) We had a huge run up during the heights of the bubble, and a bearish diamond pattern formed. I remember John Murphy pointing it's formation out back then as well, as did plenty other technical anlysts. If you think this is stupid, then ask yourself whether you came to the same conclusion back then, i.e. to short stocks in the long run. Currently, we are approaching the 11000 resistance again, which was strong during the last test. If the Dow fails again to break through it and a bear market emerges e.g. due to a housing crash or a slowing chinese economy, chances are high that we will stay in the range for the next years. And if history repeats itself, this could very well last for 14 more years. Cheers!