This analyst is basing his conclusions on an examination of charts from the 1929 crash and comparing them to the present recession and post-recession period.
Bad news sells. Its also interesting to get a wide range of ideas.
CNBC: Dow May Crash to 7,500 If 10,600 Not Breached
A very bearish analysis using the pattern of retreat behavior in 1930 suggests the Dow could retreat to around 7,500 in 2010.
The head and shoulder pattern in the Dow and its downside targets, are invalidated with a sustainable rise above 10,600. A move above this level does not signal a resumption of the uptrend, but it does reduce the probability of a double dip.
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