Dow to 38,000 by 2022

President Trump said the Dow would be 10,000 points higher if it was not for the FED.
In truth if the Dow breaks to new all time highs the next stop is 38,000 and he may be proven correct. Is there an election on? 

Of course who knows? But lets continue. 

The fundamentals behind this may be:

- A good deal with China.
- The FED turning on easy money with further rate cuts (very strange with a market near all time highs). FOMC Sept 17th well tell us more.
- The above turbo charging stock buy backs.
- Off shore money running out of foreign equity markets in to US markets (see note1).

Note1: Of course this has happened before, one particular time was just before Oct 1987 stock market crash, as it was proven the US stock market does not act in isolation, and can not escape the world economic environment, hence the quick and sharp stock market correction Oct 19 1987.



In the chart below:

- Notice how the Dow moves in burst between the green divider channel lines. It like an even pulse of a market move. 

- The most recent consolidation is a Wyckoff re accumulation cause (well so far) and the effect would carry stocks to 38,000. It is not distribution as one would expect more volatility and we do not have that.

- 38,000 target is the next green outer channel line.

Here is the longer term view of the red and green channels.

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