Chart of the Day shows the latest decline that began in May for the DJIA is getting close to testing the green support line.
Chart Talk: After making a new high at 14,198 in 2007, the DJIA corrected all the way back to test its January 2000 high at 11,750 in January and March of this year (dashed green line on the chart above.) After a major bear market for stocks or indexes, it is quite common for the charts to "test the breakout from above." The chart above shows the DOW attempted to test this break-out from above in early 2007, but investors were so bullish the market didn't get down to the prior high at 11,750. This year the markets appear to have found support at the dashed green line
For discussion of the SOX index, see "Grab your SOX, Semiconductor Stocks Ready to Soar."
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- $100,000 invested 1/1/99 became $172,470
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