CLICK ON CHART TO ENLARGE
Months ago the Power of the Pattern shared that the Dow could make it to the 16,000 level (see post here) Last month the Dow came within 350 points, less than 3% from the target.
The above chart reflects that numerous resistance lines all meet at price point (1) in the Dow. Was this heavy resistance the reason the Dow backed off around 800 points from the highs reached in the month of August?
In my 33-years in the business…. I don’t know if I have seen such a cluster of resistance that happens to meet at one price point, that ties in some of the most important “Emotipoints” (key emotional highs and lows) dating back decades!!!
Observations….it would be super bullish for the Dow if it breaks above this resistance. On the flip side a break of rising support would NOT be good for the Dow, with this cluster of heavy resistance overhead!