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• At The Close by William Ferree

  ARTICLE SYNOPSIS ...At The Close by William Ferree Where Do Indexes Reverse? Those big round numbers have an influence on prices?sometimes great, and sometimes (surprisingly) not so great. Big round numbers, those with a single digit followed by zeroes, obviously have an influence on prices, and most major reversals have occurred as a popular index was hitting one. The Dow Jones Industrial Average (DJIA) has long represented the market to most observers, and Figure 1 shows that near the turn of the last century, it reversed six times from the 100 level. After finally breaking above the resistance around 100, i...

AUTHOR: William FerreeDATE: SEP 2007SUBJECT: At The Close