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Sunday December 15th 2019

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Dow 20,000 This Year? Is 18,000 The New Bottom Resistance?

The Dow at 20,000, will it happen and when?  When the prediction of the Dow Jones Industrials Average (the DJIA, or “The Dow”) breaking 18,000 was made years ago the pundits laughed it off.  Even now as they say “A correction” is due, 18,000 is looking like the bottom support point.

On December 8th, 2014, the Dow got close to 18,000 and then retreated.  And then on Christmas Eve it broke through.  Since breaking 18,000, the line has looked pretty flat.  When you apply smoothing it looks even flatter.

This month though instead of going above and below 18,000, the DJIA has been bouncing off 18,000 making it look like a small run up is possible before the “correction”.  With record profits at all levels from big companies like American Airlines and little ones like Erlanger Healthcare, is a correction really due?

In 2013, Forbes had an article saying profits are above corporate earning ability and therefore stock prices are too high.  And yet the profits keep rolling in.

I am not making a prediction, or giving any financial advice, just asking an observational question about “The Market”

DJIA Chart from Google

Dow Bouncing up from 18,000

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