Dow Jones Historical Chart On 100 Years *Must See Charts*

The Dow Jones historical chart on 100 years has a breathtaking setup. This post features several must see Dow Jones 100 year charts and learnings from it. One of the key take-aways is that the Dow Jones managed to clear its 100 years rising channel in March of 2021. The price level it cleared, back then, was 31.7k points approximately. This is a crucial price point, going forward, investors definitely need to gauge trends of the Dow Jones index against this 31.7k level. In April of 2022, the index fell inside its channel again. One other take-away is that a stock market crash in 2023 is not likely to occur.

Right after the Corona crash we wrote this “the Dow Jones 100 year chart suggests that this market is moving to 32,000 points where it will meet 100 year resistance“. Our forecast was accurate, the Dow Jones even exceeded our price target.

We also forecasted that the Dow Jones would test 40k points which it didn’t. The Dow stopped rising some 7% below our Dow Jones 2022 forecast.

In this article we look at the Dow Jones historical chart on 100 years on 3 timeframes. We use the same 100 years chart and look at the monthly, weekly, daily timeframes.

Dow Jones Chart On 100 Years: monthly

The longest timeframe of the Dow Jones chart is the quarterly chart on 100 years.

The one and only time that the Dow Jones index fell below its 100 year rising channel was in 1930 and in 1974. No coincidence the Wall Street crash of 1929 resulted in the Dow Jones falling to levels so low even on a 100 year rising channel.

A rising channel is a common thing on any chart. However, it is really exceptional to see a 100 year channel like the one on the Dow Jones historical chart.

Another important observation on the 100 year chart of the Dow Jones is what happens every time this index touches support as well as resistance.

Each and every time the top of this giant channel is tested it results in a long and/or exceptionally aggressive decline. The tests of resistances that took place in the last 100 years: 1928, 2000, arguably 2020 (although not perfect). In 2021, the Dow Jones index exceeded its 100 year channel for some 12 months (until April/May of 2022).

This brings up the question whether aggressive selling can be expected heading into 2023? The one big difference between the occurrences in 1929 and 2000 is that the rally into the top of the channel was a very steep, multi-year rally. The shape is materially different in the period 2019-2023. This makes it unclear whether the test of resistance in 2022 is going to trigger a violent sell-off

Dow Jones 100 Years Historical Chart: Distinct phases

Basically, between 1932 and 1966, the Dow Jones index has risen 10-fold.

Buying in 1966 would have been catastrophic for one’s portfolio. That is because the Dow was trading in the upper area of its long term channel. The Dow corrected combined with sideways trading during 2 decades only to test support levels multiple times. As of 1984, the Dow went in almost one straight line up until the year 2000.

Between 2000 and 2013 the Dow has traded in a wide range.

In 2013 a triple top breakout took place. Arguably, that’s the moment when the stock bull market started, not March 2009.

Right now, the Dow Jones Industrials Index is trading in its upper band of its long term rising channel. It does not trade at an extreme level though, it is some 25% to 30% below extreme levels.