The market is about to get a lot more interesting as a new trend will begin in 2019.
This trend will see a huge surge in the stock market which will continue until 2020.
A new trend is coming in 2019, as traders have been anticipating for the last couple of years.
“There is an impending peak in the Dow Jones Industrial Average (DJIA) and this is the next step in a process which will lead to a correction of the US economy,” the brokerage says.
There are two phases of this phenomenon.
Phase 1: The Dow Jones index will fall by 200 points in 2019 after a sharp rally in 2020.
Phase 2: The DJIA will rise by 1,000 points in 2020, and it will dip by 100 points in 2021.
The reason for this is that the DJIA is expected to be more volatile and the stock index will be driven higher by this rally.
The market is already at the stage of the stock bubble, when it was around 4,000 per cent above the historical average in the last three years.
But there is a new stage which will begin next year, which will see the Dow rise by 2,000.
According to the chart below, it will peak in 2021 at 4,719,734.
As per the brokerage, the rally of 2021 is not unexpected as this is not a bubble, but rather a transition phase in the global economy.
It is likely that the rally will last for a year, and then will begin a decline.
This is a chart from the NYSE.
When this happens, the market will start to drop and it could even fall to 3,000 by 2021.
After that, the Dow will start its slide, and the market could reach 4,200 by 2021, when the rally ends.
It is expected that the Dow is likely to fall to 4,150 in 2021, which is the lowest level of the year.
The rally could continue till 2022 and there is still hope for the stock to go up.
“However, the next major wave is expected in 2019 where the Dow should go higher and it is likely the Dow could peak at 4.5 times the historical norm.
However, there is the risk that the market may go back to levels last seen in late 2019 and 2020,” the broker says.