Home > Dow Jones Industrial Average: 1929/2014 Stock Market Crash Correlation Charts
Print

Dow Jones Industrial Average: 1929/2014 Stock Market Crash Correlation Charts

February 18th, 2014

dow 13000Thomas Carreno: Perhaps you have seen or heard about the 1929 2014 correlation chart that has received quite a bit of publicity recently (Tom Demark and Mcclellan) It has been fascinating to see the market action as measured by the Dow Jones Industrial Average (INDEXDJX:.DJI) follow the 1929 parallel very closely in terms of the number of days of each decline and advance leg and also the percentages.

I have calculated that the percent magnitudes of each leg in the current market is about HALF of what occurred in 1929. So if history repeats we should be on the verge of an approximate 22% drop from the February 14th, 2014 high in the DJIA to the ultimate low.

Right now we are in a very critical trading zone where the DJIA absolutely MUST conform to a few price rules starting next week. If it does not start to follow the below mentioned rules very very closely then the entire crash/panic scenario starts to become highly doubtful.

Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?


"I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets -- year-in and year-out."

CLICK HERE to get your Free E-Book, “The Little Black Book Of Billionaires Secrets”

1929 price chart

1929 Price Chart

In summary here are the rules. Starting next week the DJIA absolutely cannot trade higher than 16,176 on a closing basis (We must trade down on Tuesday in the DJIA. Monday February 17th, 2014 is Presidents Day holiday so stock exchanges are closed Monday).

The DJIA should start to trade down next week and start to show some strong weakness right from the get go. Ideally the weakness should occur almost every day next week.

The trigger for the pattern similarity to truly engage is a move below 15,700 in the DJIA. 15,700 marks a very key support zone and if it is broken could start to trigger a panic similar to the 1929 correlation pattern. Note that in both charts below the two horizontal blue lines in both time frames marking critical support and resistance.

Pages: Next


NYSE:DIA, NYSE:SPY


 

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Facebook Comments

Comments



  1. stock market today
    April 21st, 2014 at 11:39 | #1

    Hey guys,

    We know that online stock market is essential for every business man.so if you want the best online stock market for you please
    visit here.here are the best online stock market today in the world.

    Thank you

  2. Scott Sinnock
    February 21st, 2014 at 11:53 | #2

    more like numerology

  1. No trackbacks yet.




Copyright 2009-2014 WBC Media, LLC