The Dow Jones Industrial Average Just Hit A Technical Wall

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

brick-wall-pattern-5-1186757

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.


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