From a long-term, 30,000 foot view, the Dow is just a “pinch away” from a series of resistance lines, ranging from 13 years to 31 years, that have marked important emotional highs & lows in the past suggesting that once the Dow reaches 16,000 or so it will correct.
[The following article is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Kimble goes on to say in further edited excerpts:
A series of long-term resistance lines, ranging from 13 years to 31 years, drawn off of the Monthly closing prices of the 1982 low, 1987 high, 2002 & 2003 low and 2011 high, meet at one price point at (1) in the chart below. You will notice in the inset chart that last month the Dow touched one of these lines and stopped on a dime.
CLICK ON CHART TO ENLARGE
These resistance lines intersect around the 16,000 level, about 4% above current prices.
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
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