Market outlook warns of near-term shakeout and potential Dow move
The market is a discounting mechanism and is signaling that soft conditions will turn beautiful in six to nine months. Caution rises as momentum deteriorates and early big winners face profit taking while money shifts to laggards. Despite long term bullishness, the risk/reward for new buying is negative now, with a projected shakeout to Dow 2100, a rebound to 2400 by spring, and a 12 to 15 percent correction thereafter.
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