On January 31, 2024 an Engrbytrade™ ratio measurement was discussed for the Dow Jones Index using key points in the chart structure. Custom ratio measurements were taken to obtain consistent results based on historical chart structures, such as the S&P500, which appears to be in the process of recreating its 1970 – 1973 chart structure.
A custom ratio measurement was taken between October 4, 1972 and October 17, 1972 with a peak result of 3.046, as shown in the last chart. A similar measurement was taken between October 17, 2023 and October 27, 2023 with a peak result of 3.0074. The February 2, 2024 measurement of 3.0074 is within 1.2% of the January 11, 1973 measurement of 3.046. A move up to the 3.046 level in 2024 would equal 4986.48 on the S&P500.
A decline is still expected based on key factors noted on January 29, 2024. Additional data will be needed to see if a decline similar to the first quarter of 1973 occurs.
Stock charts courtesy of StockCharts.com.
