Dow Jones Industrial Average: 11,750.28: We Were Warned (OSK)

The Dow Jones Industrial Average (DJIA) is approaching the Tech Bubble peak, or the 11,750.28 pt-level, a level we referred to a year ago in our report, “DJIA: Oversold on Record Volume” when drawing up our best-case scenario for a rebound. The index has rallied some 70% without a meaningful correction. It would be extremely difficult, although not impossible, for the market to push beyond such a significant peak after an extended run in just a year. We are starting to feel as if the stock market is slowly turning into a game of musical chairs as it gets closer to the 11,750.28 pt-level. The music could potentially stop anytime in this vicinity, and when it does, there will be a wild dash for the chairs. And ironically, we are now only about 5% away from this level.