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Dow Jones Megaphone pattern, bounce of new support

Below looks at the Dow Jones Industrials Index over the past 100 years on a monthly closing basis-

In the early 1980’s the Dow used old resistance to become new support at (1), where a breakout and strong rallied followed.

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The Dow looks to be using old resistance as new support to push higher off of at (2) again.

Positive price action off new support at (2) continues. For bulls to get concerning long-term concerning message from this pattern, support would need to be taken out at (2).

 

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