The Fall 1907 Union Pacific Rise and Pre-Election Break

In early fall 1907, Union Pacific led a market rise from below 150 to a peak of 167.375. For several days before this advance culminated, heavy selling occurred in other key stocks like Reading, St. Paul, Copper, Steel, and Smelters, masked by Union Pacific's strength. This divergence signaled the market's turning point. When the liquidation in other stocks finished, Union Pacific's support orders were withdrawn, triggering a pre-election break that saw Union Pacific drop over 20 points, with proportional declines across the market.