Those who do not learn from history are doomed to repeat it.
The Dow has historically had trouble breaking through certain price "barriers". I've known for some time about the 1,000 point barrier during the 70's and early 80's. It's just recently that I've looked back to the first time the DJIA crossed the 100 point barrier. I'm amazed at what I found. I call it the "Extra Digit Barrier". Following is a chart of the first time the DJIA broke above 100. Notice that less than 2 years later it had melted down 48.5% to 53!
The 2nd chart is the 2nd time the dow broke above 100. Investors were then dealt a 2 year bear market that ended down 17.4%.
The 3rd and 4th time the Dow broke above 100 are charted below. Notice the respective 40% and 47% declines.
This last low in 1921 was the official start of the biggest bull market mania in recorded history... until now.
On the next page I will show you the 1,000 point barrier and you can see the eerie similarities for yourself.