DowJones heading to 16'000?

When you don't know where the market is going - have a look back in time.

I took a 20 years chart of the DJIA on a monthly basis with the MACD underlying.

Sometimes, there are whipsaws, but whenever the Moving Averages of the MACD started to diverge downside (1)  a correction of negative market phase was comming.

The same is true when the Moving Averages started to diverge to the upside (2) - the more they diverged, the stronger the market was moving up.

As we are currently in a situation like (1) - this indicator suggests we're moving down. The slope of the movement is telling me it will be a soft correction - yet considering HOW LONG we are already in a bull market, this could go as low as 16'000 points

The following fundamental reasons support that idea: current negative market sentiment due to a possible GREXIT, summer holidays comming up with traditional low volume.

My suggestion: put your stops in place once the market breaks out of the current uptrend channel to the downside.