Another Thousand Point Milestone for the Dow
Tuesday, February 28, 2012 at 05:09PM After a few unsuccessful attempts in the last few days, the DJIA finally closed above 13K today for the first time in nearly four years. If it seems like just a few weeks ago that we were all celebrating the DJIA's close back above 12K, that is because it was. Just over two months ago on 12/20/2011, the DJIA rallied and closed above 12K after briefly dipping below it. While 70 days to cross two 1,000-point thresholds seems fast, it is far from a record. Back in March 2000, the DJIA closed above 11K after trading below 10K just eight days earlier! Furthermore, just last October, the DJIA closed above 12K just three weeks after crossing above the 11K milestone. As shown in the table below, there have been 15 prior rallies in the DJIA where the index crossed above two 1,000-point thresholds in less than 70 days.
Granted, thousand point milestones are essentially meaningless and technically just as arbitrary as any other number. That being said, given the hoopla that surrounds the market every time one of these levels is crossed (even if it isn't the first time the index does so), one could argue that they do have some psychological impact on the minds of investors.
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