The Dow Jones Industrial Average Just Hit A Technical Wall

Share This Article
March 9, 2018 6:07am INDEXDJX:.DJI NYSE:DIA

From Chris Kimble: Don’t believe in the power of Fibonacci price levels? Perhaps this two-pack of stock market charts will change your mind.

Back in late December, I warned that we were approaching the 261.8 Fibonacci resistance level on the Dow Jones Industrials:

“We are now at the 261.8 Fibonacci price level.  Will this level bring market turbulence… sideways, lower, etc… ?  Stay tuned.”

So what happened after hitting this level?  Well, all kinds of win streaks ended and both the Dow and S&P stopped on a dime!  Market volatility picked up and investors saw the quickest 10% decline in history from all-time highs.  Will this become a “wall of resistance”.

The exact same thing occurred on the S&P 500 chart further below.  Coincidence?

Once this level was hit, both the Dow Jones and S&P 500 produced “hangman” candle patterns the following month (February). Yes, bulls may have trouble tearing down this wall of resistance!

Dow Jones Industrials – 261.8 Fibonacci “Wall”

dow jones industrials 261 fibonacci price resistance market top chart_year 2018

S&P 500 – 261.8 Fibonacci “Wall”

s&p 500 stock market top 261 fibonacci price resistance chart_year 2018

The SPDR Dow Jones Industrial Average ETF (DIA) rose $0.04 (+0.02%) in premarket trading Friday. Year-to-date, DIA has gained 0.71%, versus a 2.71% rise in the benchmark S&P 500 index during the same period.

DIA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 80 ETFs in the Large Cap Value ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from!

Most Popular

Explore More from

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again! respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories