The U.S equity markets continue to move higher with determination. The Dow Jones Industrial Average (DJIA) has broken the 18,000 level and now may have its eyes on higher price targets.
As many of you are aware, I analyze charts, using mathematics, geometry, and music to identify price patterns. And one of America’s most highly visible stock market indexes, the Dow Jones Industrial Average appears set to go higher yet. Below are some bullet points relating to potential targets, followed by a long-term chart.
Dow Jones Targets:
- Dow Jones Industrial Average – folks, 20,661 is a realistic target.
- Minor targets exist in the 18,974 -19,855 level.
- As you can see below, I was expecting “some” resistance based on the .618 price projection level around 15,242. Like the Dow Transports, it did not respect that level at all.
Dow Jones Industrial Average Long-Term Monthly Chart
So, as we come to grips with the very strong deflationary wave that is hitting the rest of the world and we see currencies crashing we need to realize the global flow of funds certainly looks as if it’s moving into the US Equity world. Are we out of the woods? I really don’t think so but I do think we have the potential for one final thrust higher into the levels I outlined above before we catch the global sovereign debt contagion. Thanks for reading.
Follow Bart on Twitter: @BartsCharts
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
