Last post on DJIA: https://bartscharts.com/2023/12/18/dow-jones-industrial-average-december-18-2023/
Folks, if you want to see why 40,655 isn’t a random number then take a peak at the link above. I was taught this technique by my mentor and friend, Michael Jenkins, and it’s basically using logs – the actual numbers – for projections. In the case above, I noticed something interesting w/ “musical note E” as its projection was present – almost to the point – at the highs in 1987 and 2007. Yeah, no kidding, take a look.
Hence – 40, 655 is a key level and take a note, just a little higher is my favorite technique – Mr. Measured Move.
Now, want to see something amazing? Take a peak to the left side of the chart and you’ll see the harmonics of EVERY MAJOR move in the DJIA. Amazing.
So, just a little higher than the level above, is the measured move and then, when we go down to the daily, you’ll see an almost perfect three drives to a top – right at our level! Can’t make this crap up peeps, can you?
So, that red zone is my target area.
Of course, I don’t have to remind you that at times all this work gets smoked and run over like a freight train. Hence, you never know folks.
One last, thru a little numerology in there … no kidding as I was typing it just came to me to “check out” the current high w/ the all time low.
1.4142 = square root of 2.
28.48*1414.2 = 40, 283
And, let’s not forget this amazing trend line (hint hint from the all time low) that we are batting up against. Yes, I know I truncated the high in the late 1920’s. The reason I did that is because it fits nicely the rest of the price chart. It “looks good” to me.
The .382 of the entire darn run from 28.48 is – basically – 25,000. I’ll take it and, in the big scheme of things might seem like a big correction, but it really isn’t it. Depending on the environment going around, that might be a superb BUY to get into this insane run.
Who knows, but for now, I’m thinking we hit the breaks for a bit.
Bart, I’m so excited you’ve posted about this trendline that I’ve been looking at all year! The same trend is true on the S&P 500 cash index, when we connect the highs of the Roaring ’20s to the highs of Dotcom, 2021 kissed the trendline and we’re pushing right back up to it.
To play devil’s advocate, is it possible that we push beyond it? Hypothetically, let’s go back to 1995 and we’re looking at the trendline connecting the highs of the Roaring ’20s and the high of 1987. Could we have expected the explosive move from 1995 to 2000?
Well, that was one heck of a rally in the DOW. Of course it could break thru the trend line … but I’m just not “there” yet as we went right into the “red zone” for targets. If we have another day like today, tomorrow then I’m going to have to get the eraser out and we could be on the verge of a parabolic melt up. Which, appears to be great, but is in fact the worst thing that could happen because it will have to be balanced w/ an equal “bearish” move…. let’s see what tomorrow brings. Thanks for visiting the site. Bart