NEW YORK (TheStreet) --The Dow Jones Industrial Average eclipsed 19,000 during early morning trading on Tuesday, reaching an all-time high. CNBC reporter Eric Chemi explained the trends in stocks upon hitting these levels.
"When you go back over 30 years and you look at what happens at these triples zero barriers (2,000, all the way up to 18,000) what we have seen is almost a pattern in which the Dow will outperform the S&P 500," Chemi said on "Squawk Alley" this morning.
He noted that when looking at one week, one month and one-quarter returns the Dow will, on average, beat the overall market.
"One month returns, 13 of the 17 times, the Dow beats the S&P 500. You go back to 2007, the Dow hit 13,000 and then in the next quarter beat the overall market by about 4%," Chemi explained.
Furthermore, should we close above 19,000 on the Dow today, it will signal break through resistance and the discovery of a new ceiling.
"And then, you get a lot more momentum," Chemi said.