The Dow Jones Historical Chart For 100 Years

The Dow Jones Industrials Index (DJI ) is the most known and oldest stock market index. The Dow Jones historical chart for 100 years has a breathtaking chart pattern. As part of our charts analysis, and our aspiration to host the coolest long term charts in the world we feature our analysis on the Dow Jones historical chart for 100 years in this article. To us, it suggests either a major top is being set in 2019 or a ‘new normal’ with moderate but continuous gains in U.S. stock markets.

The Dow Jones Industrials Index was founded on February 16th, 1885, as per Wikipedia. The index tracks 30 large, publicly owned companies based in the United States.

The Dow Jones organization grew over time and now has lots of financial media in its group, think of MarketWatch and Barron’s.

Stock market overvalued or not?

Many are talking about the extreme valuations of stock markets. The Dow Jones historical chart for 100 years suggests that U.S. stocks are not valued at extreme levels. It suggests that this is momentum in stock markets.

It does not tell anything about a correction, or timing thereof. Many fear a stock market crash but a long term chart like the Dow Jones historical chart for 100 years is not necessarily going to confirm any of this.

Looking at the 100-year chart of the Dow Jones it becomes clear how strong the uptrend has been in recent decades. It also becomes clear that more upside is certainly in the cards while downside potential is not necessarily bearish long term.

This may sound too vague or opaque, admittedly, so let’s explain what we derive from the Dow Jones historical chart for 100 years.

Dow Jones historical chart for 100 years: Distinct Phases

Basically, between 1932 and 1966, the Dow Jones index has risen 10-fold.

Buying in 1966 would have been catastrophic for one’s portfolio. That is because the Dow was trading in the upper area of its long term channel. The Dow corrected combined with sideways trading during 2 decades only to test support levels multiple times. As of 1984, the Dow went in almost one straight line up until the year 2000.

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