This occurs when the DJI reaches an "overbought" position near the upper band with our proprietary internal strength indicators negative and weakening.

Below you can see how this juxtaposition of technical conditions prevailed in early October 1987 just before the DJI suffered its most severe plunge since 1929. From the pinpointed "S9" on October 5th, the DJI dropped more than 30%, from 2640 to 1740. A fourth S9 in a year is very bearish.

Don't believe for a second that such stock market plunges cannot be predicted. Using the PEERLESS system, which had been in place since 1981, our Nightly Hotline and bi-weekly market letter, Peerless Forecasts, in early October 1987 predicted there would be "an avalanche of institutional sell orders". We did the same thing - real time - in July 1990.

Proof?

Click this icon to see real-time PEERLESS chart
of the 1990 DJI-Market Top:

PEERLESS Excelled Real-Time after 1981.

Look at how the start of the great bull market 1982-1996 was signaled by a series of major buy signals, B12's which are our most bullish and B9's which are our most reliable.

Click this icon to see PEERLESS chart
of the 1982 DJI-Market Bottom::

The major BUY and SELL Signals given by PEERLESS after 1981, have been very reliable and very profitable.

Look at the way our BUY B12 started the 1982-1983 bull market. It was given on 8/18/92 with the DJI at 829. The DJI then rose 48% in eleven months to 1230, when on 7/27/83 the first major SELL S9 signal during this whole powerful advance was sounded.

Two more S9 signals took place in late 1983. The DJI then fell 15%, from 1270 to 1090. After that, the next major PEERLESS BUY signal, a B10, was produced on August 2, 1984. Over the next 20 months, the DJI then rose 57% to 1826 before the next major SELL S9 in mid-1986.

The Major Buy and Sell Signals
Excelled Real-Time in 1986-1987

On September 12, 1986, with the DJI at 1759, PEERLESS users were again told by the appearance of a major PEERLESS BUY B9 signal that the bull market was about to resume. The DJI then rose 34% more until there was another S9 signal on April 7, 1987 with the DJI at 2363. This brought a quick decline to the lower band and was reversed by the BUY B4 on 6/17/87. The DJI then gained another 10% with PEERLESS users correctly “long” the market.

On October 2nd and October 5th with the DJI at 2640 PEERLESS gave its fourth S9 signals of the year. This immediately led to the October '87 Crash. The DJI fell in 3 weeks form 2640 to 1740. Smaller stocks fell a lot more than the 30% that the DJI declined. (The 1987 chart was shown earlier.) With the DJI near 1900 in January 1988, a series of emphatic BUY B9's told us to get back into the market. 1988 saw the DJI build its base.

1989 produced a great bull market. The next major non-Presidential Election Year SELL “S9” signal was on October 10, 1989 with the DJI at 2785. By then the DJI had risen 874 points and was vulnerable again. It next fell sharply below 2600. The next major non-Presidential Election Year SELL “S9” signal was on October 10, 1989 with the DJI at 2785. By then the DJI had risen 874 points and was vulnerable again. It next fell sharply below 2600.

1989 Bull Market Ended with Another S9
That PEERLESS perfectly Call Real-Time

The market then went into a broad trading range. The tops were called perfectly - real-time. The July 1990 top showed a perfect S9. Six months later and 380 points lower, PEERLESS gave another BUY B12, out most bullish general market signal. The DJI typically rallies more than 25% after a B12. There have been 14 cases since 1965. This launched the bull market of 1991-1993.

Click this icon to see real-time PEERLESS chart of the 1990 DJI-Market Top:

DJI: 1994-1995

The chart below shows the 1994 October “S9” and the start of bull market early in 1995. Note the major B15 overrode the March 1995 “S9” and told us to expect much higher prices. The average DJI gain after a major BUY B15 is 8.7% at the time of the next major SELL “S9”.

Click this icon to see real-time PEERLESS chart
of the 1995 DJI-Market Take-off:

Click this icon to see PEERLESS chart of the 1996 NASDAQ-Market Top and Sell-Off

Where Is The US Stock Market Headed Next?
Find out - by ordering your copy of Tiger's Peerless Stock Market Timing Software.

Get PEERLESS Stock Market Timing Software for $495
and Get 3 months' PEERLESS FORECASTS for FREE!

Peerless Software includes:

(1) Windows-based Peerless Stock Market Timing Software to place automatic buy and sell signals on charts of the Dow Jones Industrial Average, exactly like those shown in the charts above.

(2) The self-updating automatic signals' track record for major and minor signals, which is built into the software. HELP routines easily let you learn the historical significance of all signals. A 270 page manual lets you study the market's history since 1965 from the PEERLESS perspective.

(3) Historical back data since 1987.

(4) TIGER's communications software to ride on the back of ProComm for Windows to get new data from TIGER BBS or Dial Data.

Now would be a good time for investors and traders to apply the lessons of PEERLESS.  Order Peerless Stock Market Timing Software today.