There is currently some very nice symmetry on the Dow Jones futures chart, in terms of time and price. Looking at history it is evident that markets like to behave symmetrically. Is the Dow Jones about to turn upwards again?
Putting all the current doom and gloom news aside for a moment, looking at the chart we might see the market pointing upwards again, at least for a little while. The first chart shows that the previous major down range lasted for 57 days, which is exactly what the current down range has lasted. And as we know history likes to repeat itself… In addition to this the two ranges are of the same magnitude – the current one slightly larger, however yesterday the market closed just above the 100% repetition level.
Dow Jones symmetry
The next chart shows the bigger picture as from March 2003, when the previous Bull Market started. The chart shows some angles between time and price (Gann Fans). We can see that the Bull Run started at a very steep angle 8×1, which means 8 units of price per 1 unit of time. In more recent time we see that the 2×1 angle has acted as a support level before the market plummeted down and just hit the 1×1 angle. We also see that the 8×1 downward angle from the All Time High (ATH) in October last year has acted as a very steep resistance level.
Dow Jones Gann fans
Further to the above we are coming up to the anniversary of the ATH, which is an important cycle to look at.
Is the worst over? Are we looking at a change to an upwards direction? Listening to the media we are certainly not… However it is worth paying attention to the Dow Jones in the near future – who knows, it might surprise us all by pointing up again, at least for a while.