Sunday, January 27, 2013

Benchmark resistance for the Dow

An important factor to consider as we enter the final week of January is that the major indices are bumping up against all-time highs.  The Dow Jones Industrial Average for instance is about to test its 2007 high of 14,000.  The Dow closed Friday at 13,896 and is well within reach of this benchmark level.  Round number levels tend to have psychological significance, so a reaction shortly after reaching, or exceeding, the 14,000 level wouldn’t be surprising. 

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