A lower Dow index causes a sell signal for the Dow Theory

Dow Jones Industrial Average, Dow Jones Industrial Average,
A 767 pips tumble in Friday afternoon trade, to crash below the June 17 closing low (29888.78), not only showed that the bear market was alive and kicking, but also triggered a sell signal based on century-old Dow Market Theory Analytics . The new low for the Dow, combined with a series of lower closing highs since January from the Dow. 4 record close at 36,799.65, confirming the Dow Theory’s definition of a downtrend, a continuous pattern of lower tops and lower bottoms. And since the Dow Jones Transportation Index (DJT),
Already closed on September 16 below the closing low of June, the new low of the Dow Jones Industrial Average completes the “sell” signal. As a MarketWatch contributor and founder of Hulbert Ratings LLC wrote, Dow Theory, despite its age, has been outperforming the broader stock market for a long time.

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