The Dow Jones saw some selling pressure this past week, closing down 4.94% from its last all-time high of October 3rd of last year.
Time to press the panic button? Not as far as I’m concerned, but then I also have no exposure to the broad stock market. But speaking as a spectator sitting in the peanut gallery, my key indicator of when the people who do have market exposure to the NYSE and NASDAQ should exit the market was, and still is when the Dow Jones Industrial Average once again begins experiencing days of extreme volatility, (+/-) 2% daily moves from a previous day’s closing price. Until the Dow Jones once again begins seeing those dreaded 2% days, I’ll be sitting in the cheap seats eating peanuts and cheering on the bulls.
This week I thought I’d use my Bear’s Eye View (BEV) chart of the Dow Jones going back to February 1885, with an in-depth analysis. It’s an amazing view of the daily ups and downs for the past 134 years in the Dow Jones. So what are we actually looking at? We’re looking at each daily close of the Dow Jones since 16 February 1885, Any Dow Jones closing price that IS NOT a new all-time high registers as a negative percentage from the Dow Jones’ last all-time high. For example, today’s Dow Jones BEV value indicates it has closed -4.94% from its last all-time high of October 3rd 2018.