WHERE NO MAN HAS GONE BEFORE

Here's a look at a weekly chart of the DOW. The bold red trend line originates from the 10/20/1987 low and goes through the 1/14 2000 high. That advance traveled 10134 points in 4469 days, or a little more than 12 years and averaged 2.2676 pts / day. That led to a 38.6 % correction which lasted 1000 days. It took another 18 years for that trend line to be tested again with the high on 1/26/2018. The actual high was 26616.71, a bit short of the computed high of 26686.86 but it led to an 18.4 % correction over the next 11 months.

The bold blue line also travels at 2.2676 pts / day but originates from the 8/25/1987 high of 2736.61. The first time that line was ever tested came on 2/12/2020 - the Covid high - the actual print was 29568.57 and the computed high was 29628.08. Once again it fell a bit short and prompted a 38.4 % correction over 40 days - the largest point correction in the history of the market. Since then the market has roared back and is testing it again. The high on 11/24/20 was 30116.51 - the first close above 30,000. The computed price for that day is 30276.61. The upper trend line remains unbroken in 33 years.

The trend line range for Monday is 30290.22 and 29042.83 and it's easy enough to figure it out going forward. It's curious that 2.2676 points is representative of the fractional equivalent of PI - 22/7. It would be equally curious, but somewhat fitting, if an unprecedented market event could take place during an unprecedented time.