The Very Long-Term Horizontal S/R Levels

Figure 6.18 shows a closer view of the region of Figure 6.17 where the three horizontal levels cross the prices, 1900 through 1990.

The first level, H1, is positioned halfway between the peaks of 1901 and 1906. About eight decades later, in 1982, price came down sharply, at the end of the Bob Hope Generation's bulge, and turned around essentially at that level. H2, defined at the peak of 1929, resisted the price peak in 1956 and then supported the drop in 1960, these events being 27 to 31 years after the level was established. H2 again acted as resistance in 1976. H3, established in the mid-1960s, served as resistance in 1987, and support in 1992.

FIGURE 6.18 S&P 500 on quarterly bars, 1900–1990, inflation-adjusted. ...

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