Road To A Million

Is Dow Jones Crash Coming? What History and Charts Suggest

Dow Jones Crash
image of dow jones crash

With the Dow Jones Industrial Average once again testing the upper resistance of a long-term wedge formation, traders and analysts are beginning to ask a serious question: Are we on the brink of another Dow Jones crash? A look at historical chart patterns reveals a concerning trend, each time the index hits this upper boundary, significant corrections have followed.

The Historical Context: Repeating Cycles of Boom and Bust

Market patterns often echo the past. Let’s revisit four key moments in history when the Dow Jones reversed sharply after reaching major technical thresholds:

1906: One of the first major selloffs, where the Dow plummeted nearly 90% over time following years of expansion.
1929: The most infamous Dow Jones crash in history, marking the beginning of the Great Depression.
2008: Triggered by the subprime mortgage crisis, the Dow fell over 50%, erasing years of gains.
2020: A rapid and steep correction driven by the COVID-19 pandemic and global lockdowns.
In each of these cases, price rejection near a major long-term resistance level preceded the downturn.

Technical Analysis: The Wedge Pattern and Current Outlook

Technical analysts are paying close attention to the Dow’s current position inside a rising wedge pattern, which often indicates potential for a breakdown. As the index consolidates near the pattern’s upper boundary, the risk of a significant correction increases, especially when combined with macroeconomic uncertainty and stretched valuations.

While past performance doesn’t guarantee future outcomes, historical symmetry in technical patterns can act as a warning signal. If history were to “repeat” or “rhyme,” the potential downside could be considerable.

How Bad Could a Dow Jones Crash Be?

Although a 90% decline like in 1929 is unlikely under current monetary systems and intervention mechanisms, a 20–40% correction is within the realm of historical precedent. Such a decline could materially impact long-term portfolios, especially those heavily concentrated in U.S. equities.

How to Prepare in Case of Dow Jones Crash

Rather than panic, traders and investors should focus on preparation:

Diversification: Ensure exposure to multiple asset classes, including commodities, fixed income, and global markets.
Technical discipline: Use stop-loss strategies and revisit your risk/reward parameters.
Monitor leading indicators: Watch for key signs such as falling breadth, high volatility spikes, and declining earnings sentiment.
Alternative hedges: Some traders are exploring gold, inverse ETFs, or options as protective tools in uncertain times.


Final Thoughts

The possibility of a Dow Jones crash isn’t just financial folklore, it’s a risk that appears across every generation. Whether this is another repeat of historical patterns or a false alarm, being aware of long-term chart structures and historical parallels is critical.

While speculation can grab headlines, sound preparation is what protects portfolios. Investors would be wise to approach the current setup with caution, discipline, and a willingness to adapt.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consult a registered financial advisor before making investment decisions.

And While you’re at it, go join our Discord to survive and thrive in this crazy market!

Click here to read our latest article: Recency Bias and How it Sabotages Traders.

road.toa.million

102

🎯 Chasing every trade? Let’s be real—you’re not trading, you’re gambling.

Forex can feel like a high-stakes game, but if you’re jumping on every little market twitch, you’re just rolling the dice. No strategy? No edge. Just hoping the market will do you a favor (spoiler: it won’t).

🔑 Stop pretending and start trading with a plan.

Success isn’t about firing off a bunch of trades. It’s about making the right moves at the right time. A strategy keeps your head cool and your decisions sharp, while emotions turn you into a market chaser. Winners trade with purpose—period.

👥 Join our Discord for real signals (minus the noise).

We’re not here to pump hype or sell dreams. Edge-Forex gives you clear, actionable signals so you can focus on winning, not guessing. Why gamble when you can trade with precision?

🚫 Cut the chase.

🎯 It’s time to trade like you mean it.

Stop running after trades and start running the game. Edge-Forex has your back with real signals, smart moves, and a strategy that sticks.

#TradeWithPurpose #SmartTradesOnly #NoMoreGuessing #EdgeForex #WinningTrades #StopChasingTrades

Open
🎯 Chasing every trade? Let’s be real—you’re not trading, you’re gambling. Forex can feel like a high-stakes game, but if you’re jumping on every little market twitch, you’re just rolling the dice. No strategy? No edge. Just hoping the market will do you a favor (spoiler: it won’t). 🔑 Stop pretending and start trading with a plan. Success isn’t about firing off a bunch of trades. It’s about making the right moves at the right time. A strategy keeps your head cool and your decisions sharp, while emotions turn you into a market chaser. Winners trade with purpose—period. 👥 Join our Discord for real signals (minus the noise). We’re not here to pump hype or sell dreams. Edge-Forex gives you clear, actionable signals so you can focus on winning, not guessing. Why gamble when you can trade with precision? 🚫 Cut the chase. 🎯 It’s time to trade like you mean it. Stop running after trades and start running the game. Edge-Forex has your back with real signals, smart moves, and a strategy that sticks. #TradeWithPurpose #SmartTradesOnly #NoMoreGuessing #EdgeForex #WinningTrades #StopChasingTrades

💸 Is your dollar shrinking like your favorite t-shirt after one hot wash?

Inflation’s creeping at 3.7%, but while cash is stuck in the dryer, gold’s out here hitting $2,600 an ounce! 🏆 That’s a 25% gain this year—way more than your savings account is offering.

📊 In the last four years, gold’s up 50% while the dollar’s been on a slow decline. It’s time to stop babysitting your cash and start stacking metal that actually works for you! 💪

🌟 Inflation-proof your wealth by joining the golden wave. Paper money’s fading fast—so why not grab some shiny insurance for your future? The $2,600 gold clubis open for business, and your dollars are begging for a transfer.

#StackGold #InflationProof #GoldenGains #DitchPaper #WealthGoals #secureyourfuture

Open
💸 Is your dollar shrinking like your favorite t-shirt after one hot wash? Inflation’s creeping at 3.7%, but while cash is stuck in the dryer, gold’s out here hitting $2,600 an ounce! 🏆 That’s a 25% gain this year—way more than your savings account is offering. 📊 In the last four years, gold’s up 50% while the dollar’s been on a slow decline. It’s time to stop babysitting your cash and start stacking metal that actually works for you! 💪 🌟 Inflation-proof your wealth by joining the golden wave. Paper money’s fading fast—so why not grab some shiny insurance for your future? The $2,600 gold clubis open for business, and your dollars are begging for a transfer. #StackGold #InflationProof #GoldenGains #DitchPaper #WealthGoals #secureyourfuture

When your strategy was solid, but then Jerome Powell starts speaking…🥲

Learn how to stay on your feet with Edge-Forex!

Tag someone who can relate to this.

Stay ahead of the markets! 💹Follow @road.toa.million for daily updates, and join our Discord for real-time trading insights.

🔗 Link in bio! Don’t miss out!

#ForexMemes #TradingHumor #CurrencyComedy #MarketMemes #forex
#forextradinglife #sorrynotsorry #SuccessfulTrade #TreatYourself #tradingstrategy #ForexLife #TradingStruggles #StayStrong #TradingFails #LearnAndEarn #ForexDiving

Open
When your strategy was solid, but then Jerome Powell starts speaking…🥲 Learn how to stay on your feet with Edge-Forex! Tag someone who can relate to this. Stay ahead of the markets! 💹Follow @road.toa.million for daily updates, and join our Discord for real-time trading insights. 🔗 Link in bio! Don’t miss out! #ForexMemes #TradingHumor #CurrencyComedy #MarketMemes #forex #forextradinglife #sorrynotsorry #SuccessfulTrade #TreatYourself #tradingstrategy #ForexLife #TradingStruggles #StayStrong #TradingFails #LearnAndEarn #ForexDiving

The power of compounding is one of the most effective ways to grow wealth over time. 📈

By reinvesting earnings, your money starts to generate its own income, creating a snowball effect that accelerates growth. The longer you let it work, the more impactful it becomes.

Here’s why compounding is so powerful:

• Time is your best friend ⏳ – The earlier you start investing, the more time your money has to compound. Even small amounts can grow into substantial wealth over decades.

• Reinvestment is key 🔄 – Compounding works best when you reinvest dividends, interest, or profits rather than withdrawing them. This adds layers to your initial investment.

• Patience pays off 🛠️ – Compounding isn’t about overnight success. It rewards those who stay invested for the long haul.

Whether it’s in your personal finances or in business, compounding accelerates growth by leveraging your earnings to create more earnings.

Start early, be consistent, and let the power of compounding do the work! 💡

#Compounding #WealthBuilding #FinancialFreedom #InvestWisely #MoneyTips

Open
The power of compounding is one of the most effective ways to grow wealth over time. 📈 By reinvesting earnings, your money starts to generate its own income, creating a snowball effect that accelerates growth. The longer you let it work, the more impactful it becomes. Here’s why compounding is so powerful: • Time is your best friend ⏳ – The earlier you start investing, the more time your money has to compound. Even small amounts can grow into substantial wealth over decades. • Reinvestment is key 🔄 – Compounding works best when you reinvest dividends, interest, or profits rather than withdrawing them. This adds layers to your initial investment. • Patience pays off 🛠️ – Compounding isn’t about overnight success. It rewards those who stay invested for the long haul. Whether it’s in your personal finances or in business, compounding accelerates growth by leveraging your earnings to create more earnings. Start early, be consistent, and let the power of compounding do the work! 💡 #Compounding #WealthBuilding #FinancialFreedom #InvestWisely #MoneyTips
This error message is only visible to WordPress admins
There has been a problem with your Instagram Feed.
Error: Invalid Feed ID.
Image Carousel

Read More

Bitcoin Maxis: Brace For Liquidation!

Bitcoin image
Bitcoin Maxis remain bullish, but bearish RSI divergence and a…
By Vinit Makol

Trading Burnout: Why the Market is Wrecking Your Mind

Trading burnout is real—find out why the market drains you…
By Vinit Makol

Tesla’s Robotaxi: The Future or Just Another Hype Machine?

Tesla’s Robotaxi is making headlines this October. Is this driverless…
By Vinit Makol

Why BRICS Can’t Dethrone the USD?

brics dethrone dollar
Even in the face of BRICS’ de-dollarization push, the Dollar…
By Vinit Makol