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The majority of stock markets around, are in a downtrend over the past 9-months.
This morning we are taking a look at the Dow over the past few decades, actually 9 decades. The Dow has formed a rather uniform rising channel since the 1930’s, channel (A). Channel support held at the 2002/2003 lows and when channel support gave way back in 2008, market markets fell hard.
Even though the markets have been in a down trend the past 9-months, long term channel (A) remains in play as support at (1) above and support is support until broken.
We humbly remain of the opinion, that this rising channel is very important for portfolio construction going forward. The Dow remains in a long-term upward trend and to remain in this trend, support needs to remain in play!