I am not a chartist, but from what little I know on reading charts, I can form my own observations on what will happen during the most critical period when stocks peak. During the period April 2008 to end of 2008 (flat blue dotted line), is that what chartists call a "head and shoulders pattern" when the second shoulder peak is lower than the first shoulder? It was a bad sign indicating an impending crash. We all know what happened: the stock market tanked big time to a low in March 2009. Your chart tells me if you see this pattern head for the hills and reduce your stock positions.

The market bottomed and the Dow has been shooting up since March 2009 (blue dotted line). The steep trend line shows the market is in an upward trend. I would expect the upward trend to continue unabated. The chart tells me to increase my stock position and buy in selected markets which you also explained in Chart 2.

I am more impressed with the top chart. Thanks again and for your succinct analysis. I am going to keep it in my files for future reference and use. This model chart could be used also for timing your buying and selling in individual stocks and sectors.