In this paragraph, we feature the Dow Jones long term chart on 20 years. Remember, the top of the 100 year channel comes in around 37k in Feb/April of 2024. We do not see the Dow Jones trading at 40,000 in 2023 but it might happen in the timeframe 2024-2025. We believe both will be tested this decade, if not once than multiple times, whenever the next stock market crash occur it might bring the Dow Jones not only to 23k points but even 20k points (later this decade). Third, in the current consolidation period we tend to see 3 levels, as indicated with the pink lines: 23k and 30k points. Needless to say, the 28.8k level in the Dow Jones is crucial. Second, the 2020 highs acted as support in 2022. Note that we cannot derive detailed insights, certainly not medium term oriented predictions, from this ultra long Dow Jones chart.ĭow Jones long term chart on 30 years is a timeframe that comes with more actionable insights.įirst of all, we see massive consolidation periods: 1997-20-today. The top of the channel will come in around 37k points (ATH) in the period Feb to April of 2024. At the time of writing, September of 2022, the top of the channel comes in at 35k points.It happened between March of 2021 and April of 2022. For the first time in history, the Dow Jones exceeded the top of the 100 year channel.The 2021/2022 test of the top of the channel did not come after a steep rally. The one difference between now and back then is that those previous rises to the top of the channel came with very steep, multi-year rallies. Any time in the past this happened (1929, 2000, 2020) it resulted in massive market sell-offs. The Dow Jones reached the top of channel.The Dow Jones historical chart on 100 years comes with a few take-aways: We start with the longest timeframes, particularly the Dow Jones long term chart on 100 years and 30 years. We take a top down approach in this article. Dow Jones long term chart on more than 20 years Especially the Dow Jones long term chart on 20 years has some great insights for investors. The longer time frame reveals much more than the short term time frames. The Dow Jones Industrials is no exception, its long term chart shows a different picture than the shorter term charts. That is why it is always recommended to look at long term charts. While that is absolutely correct from a tactical perspective (the damage created in the subsequent 18-24 month period was horrible) it is much more ‘nuanced’ on a secular timeframe. Most investors have the perception that the 20 tops were followed by bear markets.
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