A failure in this broadening top could, if activated, take the DJIA down closer to the bottom of the long term logarithmic trading channel.
The Federal Reserve will do all it can in order to create liquidity to prevent this sort of major market crash.
I can also that resulting in a sideways market, within a fairly broad range of 7,000 to 15,000 on this log chart, until 2020, as we see happened in the 1970's after the 1960's stock bull market. That also fits well with the stagflation forecast.
As a reminder, when looking at a very long term chart like this it is important to remember that it is not adjusted for inflation.
However this all works out in nominal terms, the Dow/Gold ratio is likely to touch the 1.5 or lower level at some point in the next eight years.
