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What do you get if connect these key “Emotipoints” (Emotional highs and lows)… The 1982 low, 1987 High, 2000 high, 2002 low, 2003 low and 2007 high together?
You get a rare combo of resistance coming into play at Dow 16,000. As of this morning the Dow is now less than 500 points (less than 3%) from this potential key technical price point.
From a trend/momentum perspective the Dow is above key moving average and the advance decline line is healthy at this time. Will this rare cross roads of “Emotipoints” dating back to President Reagan some how impact the markets? I don’t know at this time.
From a technical perspective, if the Dow does break above all this resistance, it has to be viewed as a big positive!