tuesday continues relief rally or not, page-31

nine lives,

Just as an aside, pondering McHugh's comments about the likely next bear when (if) we rally back to (say) 5,000-5,200.

Assuming 3,400-3,600 indeed becomes the low, if we rally back to 5,000-5,200 then a second bear market come to pass, this would target a scary 2,000 on the XAO.

This makes some sense when you look at a chart of the long bull market from 1984 (when XAO was about 800). Roughly 2,000 was the base for about 18mths around 1994-1996, so would be the logical next target if the bull rally fails to continue on above 5,000-5,200.

The worry about this is what would that imply about the state of the economy and presumably house prices??

All hypothetical at this stage though.