I spent most of this past weekend researching and writing about major markets. The result was a special report for SB Trade Desk members.
The report seeks to identify market levels (based on median line (slope) analysis) that indicate support/resistance but also likely result in acceleration in the direction of the break for major U.S. stock market indices, address the potential of a stock market panic (specific to the Nasdaq…price levels and possible key dates included) through the prism of historical comparatives (analogs), and share longer term opportunities in several major commodity markets.
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The report includes 23 charts on the following markets. DJIA, SPX, Nasdaq composite, TLT, Gold, Silver, Coffee, and Sugar. The first two charts in the report are included below.
Dow Jones Industrial Average (DJIA) Monthly
The parallels on the long term DJIA chart are defined by the line off of the 1932 and 1982 lows. The top channel line is extended off of the 1929 high. Price remained below the median line until the break above in December 1996, at which point the bull market accelerated. The median line has been an important reference point since then, providing support in September 2001, from 2004 to 2006, and in January and March 2008. The break of the median line resulted in the largest collapse since 1929. Fast forward and the median line provided resistance from 2013 to 2015. The break above the median line in January 2017 resulted in upside acceleration into January 2018. The parallel extended off of the 2007 high has provided resistance in 2018, including earlier this month. The turn from this level shouldn’t be taken lightly, given the aftermath of previous turns lower from this line. Pay attention to the parallel that was support earlier this year (about 24190). This parallel was support and resistance in 2007-2008. A zoomed in weekly chart below reveals the precision with which pivots have been identified with these parallels since 2001.