Courtesy of Doug Short.
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Since Richard Nixon was impeached back in 1974, a certain cycle/pattern has taken place in the Dow Jones Industrial Average that has led to some of the most important highs and lows over the past 40 years.
The chart below highlights that since the 1974 low, key highs and lows have taken place every 13 years.
If this cycle were to repeat, it means that another historical price point will take place this year. In addition to the cycle, when you tie these highs and lows together they happen to meet at one price point, which is the Dow 16,000 price zone.
In April of this year the Power of the Pattern suggested the Dow could make it to the 16,000 level in the chart below (see post here).
The Dow has gained almost 900 points since the post back April and it is now within 3% of the Dow 16,000 resistance zone!
Will the 13-year cycle create another historical price point in 2013, similar to the 1974 Low, 1987 high/low or 2000 highs? Stay tuned to see if this cycle creates another price point that goes down in the history books!
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