Charles Nenner: "Long-Term Investors Should Wait Until Dow Hits 5,000"

Charles Nenner, who prior to founding the Charles Nenner Research Institute served as a technical analyst for Goldman for about 10 years, has been looking at charts and not seeing much to write home about. In his interview with the TechTicker, Nenner says "I expect the bear market rally to continue for 4 more years, with big upswings like in Japan before coming down again. I don't expect the market to totally fall out of bed. It is going to be very difficult few years to make some money. We will test the lows of 2009 to be tested over the next couple of years. I don't expect the economy to pick up until 2020." How charts can give him macroeconomic perspective with a 10 year bogey, we are not too sure. As to trading, he believes that as long as the S&P does not close below 1,085, the market will continue bouncing, and if 1,085 is taken out "it should be all over." For longer-term investors, Nenner suggests to wait until the Dow goes below its trendline average, with a Dow target of around 5,000. Of course, whether Brian Sack will allow stocks to drop that low is a different matter altogether.

h/t Slim Beleggen