I dont know the time frame. It could take a day, weeks, months or years. However, I do know the concept of retracement as I have experienced it many times before firsthand when price has formed into this cup-like formation. You think and believe there will be a breakout over the right peak then it retraces. The usual pivot point is 50% of the original rise, however, I have experienced other variations. The price needs to consolidate more before it rises over the 1550 level. In the 70s, that consolidation phase lasted 16 years.
michael, why do i always get the impression that you are a moron!!!! anyways, the only way we go to 1200 is by breaking through 1490 which is the last significant bottom. Then, we to break through 1380-1390 which is the bottom back in march. assuming we break all the trend lines afterwards, then we go to 1225 then 1175 then 1125 then 1070, but that wouldn't be a correction if we have to go that far, just my 2 cents.
Your comments above have nothing to do with TRADING. Your last comment in particular, is quite meaningless. You appear to throw a lot of "mud" onto the wall and look for something to "stick" . . . looking for generalizations ( that lack any specifics whatsoever time-framewise ) to conveniently facilitate an argument that has no REALISTIC value to a TRADER.
Yeah...I'm tired of your tired bullshit too...perhaps you should mozy on, there's a village that misses you.
stoney, what is wrong with high single digits earnings growth? why are they pointing to a global meltdown? (together with e.g. low yields, low unemployment and low P/Es) you need a good shag! regards from Austin Powers