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Dow Breaking Dual Support At Top Of 70-Year Channel

Published 03/23/2020, 02:28 PM
Updated 07/09/2023, 06:31 AM

Dow Jones Monthly Chart

When two support lines break at the same time, the environment can get rather slippery.

This chart looks at the Dow Jones Industrials on a monthly basis since the late 1920s. The Dow has spent the majority of the time since 1950 inside of rising channel (1).

It hit the top of the channel in January at (2), where it created a large bearish reversal pattern while creating a bearish momentum divergence (top chart).

The weakness of late has the Dow breaking below the December of 2018 lows and 9-year rising support at (3).

Knowing the trend is critical, for short-term and long-term investors/traders.

Latest comments

Scary chart! I wonder if the price will look for the lower trend line.
his charts have not been showing. Is Investing doing something differently?
Great chart, Chris. Certainly gives a clear and concise perspective.
Chris, could DJ take feb 2016 Low at 15,850
Thank you Chris for your great insights; much appreciated.
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