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Bulkowski's Blog Archive: ^DJI
Class Elliott Wave Fundamentals Psychology Quiz Studies Setups Software Tutorials More...
Busted
Patterns		 Candles Chart
Patterns		 Event
Patterns		 Small Patterns
As of 01/24/2020
  Indus: 28,990 -170.36 -0.6%  
  Trans: 11,060 -83.58 -0.8%  
  Utils: 932 +3.37 +0.4%  
  Nasdaq: 9,315 -87.57 -0.9%  
  S&P 500: 3,295 -30.07 -0.9%  
YTD
 +1.6%  
 +1.5%  
 +6.0%  
 +3.8%  
 +2.0%  
  Targets    Overview: 01/14/2020  
  Up arrow29,500 or 28,300 by 02/01/2020
  Up arrow11,500 or 10,700 by 02/01/2020
  Up arrow1,025 or 900 by 02/01/2020
  Up arrow9,600 or 8,900 by 02/01/2020
  Up arrow3,350 or 3,200 by 02/01/2020
As of 01/24/2020
  Indus: 28,990 -170.36 -0.6%  
  Trans: 11,060 -83.58 -0.8%  
  Utils: 932 +3.37 +0.4%  
  Nasdaq: 9,315 -87.57 -0.9%  
  S&P 500: 3,295 -30.07 -0.9%  
YTD
 +1.6%  
 +1.5%  
 +6.0%  
 +3.8%  
 +2.0%  
  Targets    Overview: 01/14/2020  
  Up arrow29,500 or 28,300 by 02/01/2020
  Up arrow11,500 or 10,700 by 02/01/2020
  Up arrow1,025 or 900 by 02/01/2020
  Up arrow9,600 or 8,900 by 02/01/2020
  Up arrow3,350 or 3,200 by 02/01/2020

Written by and copyright © 2005-2020 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners.

 

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

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Written by and copyright © 2005-2020 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Some pattern names are the registered trademarks of their respective owners. Welcome to Psychiatric voice mail. If you are obsessive compulsive, please press 1 repeatedly.