DOW JONES MAJOR MARKET TREND REVERSAL!
I decided to publish this analysis of the Dow Jones since I found it to be very significant. The chart suggests that we have reached an end of a long bull market run that lasted around 10 years. It appears that we now are transitioning into bear market! Oh well, the bears need some time in the spotlight too!
As you can see, we reached higher and higher highs as well as higher and higher bottoms in the market until we reached the all-time high of over 29,000 back in February. Since then we have experienced a few rallies but peaked at 27,250 earlier this month. Looking at the bottoms, we can see, and recall, almost too well how we hit 19,000 back in March. Remember, the little crash back in December, 2018? We found support at around 22,300.
So, we now have identified a lower low and a lower high. This creates our new bearish trend. As you can see, I have connected the dots on the chart, and you can see how the bull trend has been broken and the beginning of a bearish trending channel (red dotted lines) has formed. I expect the market to move within this bearish channel for quite some time. As you can see, we will not hit any new market highs this year considering that the resistance currently is positioned around 27,000 and will trend lower from here.
The bottom of the bearish channel intersects with a green support line around 16,700 in April, 2021. If the channel holds, 16,700 represents the worst case scenario in terms of a low on this time frame. This green support line represents strong support as it has acted as such since 1982.
Thank you for entertaining my idea. See you somewhere inside that bearish red dotted channel!
As you can see, we reached higher and higher highs as well as higher and higher bottoms in the market until we reached the all-time high of over 29,000 back in February. Since then we have experienced a few rallies but peaked at 27,250 earlier this month. Looking at the bottoms, we can see, and recall, almost too well how we hit 19,000 back in March. Remember, the little crash back in December, 2018? We found support at around 22,300.
So, we now have identified a lower low and a lower high. This creates our new bearish trend. As you can see, I have connected the dots on the chart, and you can see how the bull trend has been broken and the beginning of a bearish trending channel (red dotted lines) has formed. I expect the market to move within this bearish channel for quite some time. As you can see, we will not hit any new market highs this year considering that the resistance currently is positioned around 27,000 and will trend lower from here.
The bottom of the bearish channel intersects with a green support line around 16,700 in April, 2021. If the channel holds, 16,700 represents the worst case scenario in terms of a low on this time frame. This green support line represents strong support as it has acted as such since 1982.
Thank you for entertaining my idea. See you somewhere inside that bearish red dotted channel!