At the moment the Dow is supported by a 27.77 degree trend line. This trend line also appeared between 2011 and 2015. Points 1 and 2 touched the trend line in the last quarter of 2011 and 2012. In October 2014 a flash crash in the bond market pushed the Dow to this line again for point 3.
The current 27.77 degree trend line started between 2022 and 2023. The 2022 decline ending between September and October initiating point 1 on the line. The Dow dropped again in October 2023 for a variety of reasons hitting point 2 on the line. On April 2, 2025 tariffs went into effect and the Dow dropped again for point 3 on the line.
The 27.77 degree value is not a random value in this case. It has appeared in the past going back to the 1940s.
At this point stock markets are expected to move up slowly, just as they did in January and February 2020. Another decline is coming and the Dow will drop below this trend line triggering sell orders for retail investors. Investor sentiment will decline quickly. During this decline Market Makers will be able to acquire additional inventory before moving higher.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
