Is the Dow facing an important long-term price test? This chart would suggest yes!
This chart looks at the Dow Jones Industrials Index on a monthly basis over the past 100-years.
The Dow has spent a good deal of the past 90-years inside of bullish rising channel (1). This channel is a reminder that the long-term trend is up.
The Dow hit the top of the channel to start out the year and then it experienced a large decline.
The rally off the March lows has the Dow testing the highs of earlier this year, as it nears the underside of its long-term channel at (2).
This chart reminds me of the low odds/high impact idea.
The odds are low the Dow is double topping currently. However, If it is, the impact on the Dow could be rather large!