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!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past