Dow: Repeating Trend Lines

Charts courtesy of StockCharts.com.

A review of the 2018, 2019-2020, and 2021 trend lines shown above indicates a significant decline is expected to start by the second quarter of 2021.  In the first chart there were 9 trading days between September 21, 2018 and October 3, 2018. In the second chart there were 18 trading days between January 17, 2020 and February 12, 2020.  If this pattern continues the Dow should peak above the 2021 trend line in the 3rd chart, pullback and then hit a final peak in April.  This pattern would explain the steady accumulation of Commercial Futures Trader short positions in the S&P500 and long positions in the VIX.

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