There was a time when 100-point moves in the Dow Jones Industrial Average (DJIA) were few and far between. Naturally, the occurrence of such jumps has increased as the DJIA has trekked higher, but it is still striking statistic to point out. According Schaeffer’s Senior Quantitative Analyst Alan “Rocky” White, the Dow moved 100 points or more only 52 times in 1997. These signals peaked in the wake of the Dot Com bust of the mid-2000s, with 118 100-point moves taking place in 2002.

As you can see from the chart below, we have seen a sharp pick up in the number of 100-point Dow swings since 2007. In fact, the 2008 crash elicited 146 such moves. So far this year, the DJIA has logged 44 100-point swings. Extrapolating that data out for the rest of the year, 2010 could well see 100 or more 100-point moves. Given the market returns in 2000, 2002, and 2008, such a development may not be a good thing for the market.

To us here at www.The2012Warning.com, it is becoming increasingly evident that the stock market is not the safe haven it once was for American investors.

There is even an ad this morning on the web claiming that June 6, 2010 will be the beginning of the stock market crash for the year.  Hmmmm.  We will see, shall we not?