Tom and Brendan talk about the new highs being made by the Dow Jones Industrial Average every day. Last Tuesday the Dow Jones broke through its former all time high set on October 9, 2007. Since then it has continued to set new highs each day. What do the new highs being set by the Dow Jones mean for the average investor today?
Tom and Brendan analyze what happened the last time the Dow Jones was setting new highs. In October of 2007 all of the long term indicators we saw were negative. When all three long term indicators are negative this is a big warning sign for those looking to invest.
Currently the long term indicators that we use in point and figure charting are all looking good. Sometime in the future a pullback is probably going to happen. While some might see this as a bad thing signifying what happened the last time the Dow Jones set new highs, we disagree. If the long term indicators continue to trend positively we will be in good shape, and a pullback is nothing to tear up our game plan over.