When will the Bull Market end and at what level will the Dow Jones Industrial Average finish?

It is the question that every investor, now and at any time in last 100 years wants to know the answer to. When should I get in and when should I get out. For the 2017 equities investor, there is a specific numeric value answer to this question. The answer is provided in this article.

Before providing the answer, however, it is worth recapping the key points from my previous January 2017 post. In that article I wrote about the projected outcome for the US Dollar in 2017. Using my own proprietary Fibonacci methods, I provided a price target of 134 for the Dollar Index. Once this level is reached, I projected that there would be a sharp reversal or more accurately a crash, to a level below the 2008 lows, to around 65.

Since January the Dollar has consolidated and traded within a range. The previous analysis still stands. Therefore, as of today's date we are shortly, due a significant upward move in the dollar. I am revising the final upside target down slightly from 134 to 131, but that is still a large move from the current level of 101.8 as of March 10th.

If the dollar is due to move sharply higher - what will this do the equity markets? The answer, is that it is both good and bad for equity sentiment. Good, in the medium term in that according to conventional economic theory a strong dollar equals, variously: a sign of a strong economy, future inflationary pressures due to economic growth, relative economic strength versus peer currencies. Bad in the short term in that it creates a shock and more uncertainty about how politicians will respond, particularly in the current geopolitical climate, where there is the specter of currencies wars.

In the short term, therefore, I believe the answer to where the Dow goes next, given the prospects for the dollar, is shown in the above chart. As the dollar moves rapidly higher I am projecting a sort of concurrent "flash crash" in the Dow. With a move to the downside of perhaps 12 percent or 2500 points from the current level, to a low of 18365.

This will feel painful and frightening - but this move to the downside is not the end of the bull market that began in March 2009. From the 18365 level I am projecting a sharp reversal back up, which will continue into late summer and early autumn. For a final 2017, and final end of the bull market, price target of 23500.

The next few weeks will present some brilliant opportunities for the informed investor or trader if they can successfully catch these two moves. You have been informed.