Subscribe to RSS feeds Bulkowski Blog via RSS

Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral.

Picture of Bumper.
Kindle
Paperback
Nook
Picture of the head's law.
Kindle
Paperback
Nook
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Encyclopedia of Chart Patterns 2nd Edition book.

Bulkowski's Blog Archive: ^DJI

Class Elliott Wave Fundamentals Psychology Quiz Research Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 08/17/2017
21,751 -274.14 -1.2%
9,152 -224.77 -2.4%
734 -5.20 -0.7%
6,222 -123.20 -1.9%
2,430 -38.10 -1.5%
YTD
10.1%
1.2%
11.3%
15.6%
8.5%
Tom's Targets    Overview: 08/14/2017
22,250 or 21,500 by 09/01/2017
9,700 or 8,900 by 09/01/2017
750 or 710 by 09/01/2017
6,500 or 6,150 by 09/01/2017
2,525 or 2,425 by 09/01/2017

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

 

Blog Posting: February 4, 2008, Dow Down From Here (^DJI)

The Dow Jones Industrial Average showing Fibonacci retrace values

The chart shows the Dow Jones Industrial Average with Fibonacci retrace values highlighted. They are the three red lines at 38%, 50%, and 62%, and they mark the upward retrace of the move from A to B.

The lines represent common reversal points. So far, a reversal hasn't happened, but we are right at the 62% line after a week of strong gains. Based on this and other charts, I sold a stock this morning (Charlotte Russe Holding, CHIC), expecting a short term reversal to occur.

Of course, the Dow could continue rising and the next turning point would be 75%. However, if that were to happen, I would say that the bull run is intact, and I would have to look for the next turning point.

 

Aftermath

The Dow Jones transports on the daily scale

As the chart shows, the Dow touched the 62% retrace line and then tumbled, climbed again to the 62% retrace line and then moved lower. What more is there to say?

-- Thomas Bulkowski

Top 

 

 

 

 

 

 

 

See Also

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Welcome to Psychiatric voice mail. If you are obsessive compulsive, please press 1 repeatedly.