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The Dow Could Peak Right Here

ByChris Kimble
Published 01/30/2015, 03:07 PM
Updated 07/09/2023, 06:31 AM

The Dow

This is the Dow's quarterly chart dating back to 1965. I applied Fibonacci to the Dow's 2000 high and 2002 quarterly lows, then applied Fibonacci extension levels.

The Dow stopped on a dime in 2007 as it hit the 161% Fibonacci extension level at (1).

Now, the Dow is hitting the Fibonacci 261% Fibonacci extension level at (2). At that level, a long-term resistance line comes into play that ties in the 1987 highs and the 2002 lows.

This isn't your typical resistance level and the Dow could put in a peak at this combo.

Remember, this is a quarterly chart and it'll take time to prove -- or disprove -- if the Fibonacci extension level will impact the index.

Latest comments

Thank you, this seems to be a significant long-term inflection point. A lot of macro indicators are cycling back to long-term levels not seen in decades such as crude oil prices, copper prices, Baltic dry index, China growth rate etc.
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