I don’t like charting the Dow. Of all the manipulated indices in a manipulated market, it’s the “manipulatedest.” Nevertheless, I received a query from a member today and thought it’d be interesting to take a fresh look.
This comes as a shock, but it continues to be manipulated higher. A year ago, I noted it had reached significant resistance at the 1.618 Fib extension of its drop between 2007-2009. It had struggled to reach this level, requiring a breakout from the rising channel dating back to the age of dinosaurs.But, as luck would have it, Trump was elected and stocks tanked…for several hours. The resulting panic prompted a response by USDJPY, CL and VIX that was so dramatic that DJIA broke out past the 1.618 extension and the rising red channel.
Not even bothering with a backtest, it has since soared nearly 20%. Is there anything that can stop it?
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