If you have paid any attention to the markets lately then you have probably noticed everything is doing quite well. For nine years now the markets have been straight up with very little in the way of pullbacks or negative returns. Something interesting is happening recently though that has many concerned we are nearing a potential top. Not really a reason to crash, simple nearing a point of either slowing or underperformance.
The Dow Jones Industrial Average is the most popular, mainstream index of the bunch. Every time it hits a new 1000 point increment it is celebrated on financial media as a milestone. More astute traders like to look at the pace of these milestones as a "speed" gauge if you will.
Going back over the last 7 times the Dow moved 1000 points we notice something potentially alarming. The furthest mark in our 7 series history shows that it took 198 days for the Dow to move 1000 points. The following time this happened it only took 173 times. Then 155 the next time. 77 days the next time, 64 after that, then 43 after that. The last time the Dow moved 1000 points it only took 35 days. Notice the pace? Now just the other day the Dow moved another 1000 points and it too only took 35 days.
After last weeks rally the Dow is now 25% of the way to the next 1000 point increment and it has only been a few days since the last record. How fast can the Dow 30 move 1000 points before people start to feel it is moving too far too fast? Time will tell.