The Long Term Dow
- Posted by Greg Harmon
- on November 2nd, 2012
We just closed the books on another month so it is time to pull back from the day to day and look at the longer timeframes. The Dow Jones Industrial Average ($DJIA, $DIA) gets a lot of attention from the media but generally not much from the trading world. Maybe in this time of reflection it makes sense to take a peek at what they are all so fired up about, but with a traders twist.
The long term monthly chart of the Dow above shows the major rise from 2002 through 2007 and the fall into the 2009 lows. Using these endpoints a bullish Andrew’s Pitchfork emerges. The red Median Line is just below the current price at 12813, and so a pullback to that level is not out of the question as it attracts price lower, but the clear trend is higher. If you shift to the chart below of the Gann Square and Fan Lines you can see that after the extreme event of the 2009 low it has been
moving back towards the 1/1 line tightening the cone along the way with support with touches at the 2/1 line. The 1/1 level above at 14312 in November puts a bound on the upper side. 12813 to 14312, is quite a large range. But definitely bullish in the long term.
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Jumping into the Big Oil Gush
- New Website Tab – SPY Sentiment
- Premium Earnings 5-20-13
- Top Trade Ideas for the Week of May 20, 2013: Bonus Idea
- Top Trade Ideas for the Week of May 20, 2013: The Rest
- Top Trade Ideas for the Week of May 20, 2013: The Rest Premium
- Top Trade Ideas for the Week of May 20, 2013: The Best
- SPY Trends and Influencers May 18, 2013
- Cleveland’s Best Linkfest!
- Macro Week in Review/Preview May 17, 2013