30 Oct DOW / INDU 2007 & 2011 Chart Comparison
Here is a DOW Chart Pattern I’ve been keeping an eye on and now is probably the best time to share it with you, not necessarily as a trading idea because the repetition of a single pattern is not in itself means to take a position, but it’s something we should all be aware of to enable us to take full advantage of if other factors begin to support it as a solid trading idea.
This is the DOW chart showing the 2007 Bull Market top followed by the first major retrace that topped out 7 Months later right on the underside backtest of the trend line that had previously supported the market:
The chart below shows the 2011 Market Top followed by this week’s high of the ongoing retrace which happens to have tagged the underside of the previous supporting trend line….exactly 7 Months later:
If nothing else, this is certainly a very interesting occurrence and one which I’ll be watching very closely to capitalise on IF the market shows signs of reacting in the same way as it did in May 2008.