Home
About
Blog
Books
Contact
Donate
FAQ
Glossary
Privacy/Disclaimer
Site Map
Visual Index
What’s New
Subscribe to RSS feeds Bulkowski Blog via RSS

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral. My books...
Encyclopedia of Chart Patterns 2nd Edition book.
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.
Picture of Bumper.
Kindle
Picture of the head's law.
Kindle

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 06/04/2020
  Indus: 26,282 +11.93 +0.0%  
  Trans: 9,575 +134.48 +1.4%  
  Utils: 814 -17.21 -2.1%  
  Nasdaq: 9,616 -67.10 -0.7%  
  S&P 500: 3,112 -10.52 -0.3%  
YTD
-7.9%  
-12.2%  
-7.4%  
 +7.2%  
-3.7%  
  Targets    Overview: 05/29/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Up arrow850 or 750 by 06/15/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,200 or 2,850 by 06/15/2020
CPI (updated daily): Arrows on 5/15/20
As of 06/04/2020
  Indus: 26,282 +11.93 +0.0%  
  Trans: 9,575 +134.48 +1.4%  
  Utils: 814 -17.21 -2.1%  
  Nasdaq: 9,616 -67.10 -0.7%  
  S&P 500: 3,112 -10.52 -0.3%  
YTD
-7.9%  
-12.2%  
-7.4%  
 +7.2%  
-3.7%  
  Targets    Overview: 05/29/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Up arrow850 or 750 by 06/15/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,200 or 2,850 by 06/15/2020
CPI (updated daily): Arrows on 5/15/20

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

Top 

 

 

 

 

 

 

 

See Also

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.