In another ominous sign to investors, the market gave an old-fashioned renewed “Dow Theory Sell Signal” Today. What does that mean going forward? Let’s take a look at the Dow Jones Industrial and Dow Jones Transportation Index for additional insights. A modern Dow Theory Sell Signal is given when BOTH the Dow Industrials and Transports…
The Transportation Index plunged beneath key support, after making a large run-up in price that was quite impressive. Let’s look at $TRAN, railroad stock CSX, and the XAL Airline Index. Transportation Index: We see the powerful and strong uptrend that has developed throughout the year coming into doubt recently, thanks to a ‘three-swing’ or ‘three-push…
The DJ Transportation Index ($TRANS) is outperforming the Dow Jones index, which is an interesting development that has implications for Dow Theory. Dow Theory stresses the ‘confirmation’ between the DJ Transports and the DJ Index itself (meaning both must make a higher high to signal a ‘Buy Signal’ and vice versa). According to the theory,…