DJIA Diagram Explained

Diagram Of DJIA (1964 thru 1974) (A Linear Plot)

Examine the above diagram of the DJIA (1964 - 1974) and note:

1. The three successive lopsided 'M' formations.

2. The six repetitive formations identified as 'A' through 'F'.
   1. - The flag at the top of the flagpole.

   2. - The support and resistance area midway between the bottom of the flag (A) and the top 'C'.

   3. - The top of the lopsided 'M'.

   4. - The inverted flag.

   5. - The split support and resistance area between 'D' and 'F'.

   6. - The bottom of the lopsided 'M'.

3. The five sets of straight lines precisely connecting similar points.
   1. The tops of flag 'A'.

   2. The bottoms of flag 'A'.

   3. The high points of inverted flags 'D'.

   4. The high points of 'E', 'A', and 'C'.

   5. The high point 'C', the bottom of flag 'A', and the low point of 'F'.

4. Such repetitive precision is only the result of a computer program's dictates wherein each lopsided 'M' was altered only by the inclusion of expansion factors that failed to alter key points.   Thus, beginning in 1964 when the New York Stock Exchange's early computer was brought on line the computer programmers failed to conceal the artificial roll of the Dow Jones Industrial Average.