June 19, 2008, was the last time the Dow Jones Industrial Average (DJIA) closed above 12,000. Following a roller coaster ride that saw a near 50% decline before almost doubling, the DJIA is once again topping the 12,000 mark.
Can it stay above that level?
The DJIA is a price average of only 30 stocks. Expanding the horizon to also include the S&P 500 and Nasdaq-100 offers a broader picture of just how important Dow 12,000 is.
The S&P is trading above 1,300, and for the S&P, this figure is more than just a round-number benchmark.
The 1,300 mark hosts a cluster of resistance levels, which includes the September 2008 monthly red- candle high at 1,303 and the August 2008 high at 1,313.
The February ETF Profit Strategy Newsletter pointed out those resistance points and expected a reaction.
The S&P was rebuffed twice when it neared that area and recorded the biggest one-day declines since before Thanksgiving.
Little known is the resistance level for the Nasdaq-100.
After what's been termed a "lost decade," the Nasdaq-100 has finally been able to recapture exactly 38.2% of the points lost from the 2000 high to the 2002 low.
Fibonacci aficionados recognize the 38.2% mark as in important resistance level for a bear-market rally.
