By: Elliot Turner
We often talk about retracements and consolidation. Typically we are referencing price moves; however, we can also talk about time. When a stock (or index) makes a powerful move in one direction, it can digest that move without changing much in price. That being said, today, the rally in the Dow Jones Industrials reached it’s 61.8% retracement in time–it has now rallied for nearly 2/3rds the amount of time that it spent trendling lower from the October 2007 high.
While it may not mean much, it is something worth watching. In many respects, time is as important as price and we need to take note when important thresholds have been reached.
