Dow Theory looks for consistent price behavior in the Dow Jones Industrial Average and the Dow Jones Transportation Average. One should confirm the other (i.e. if the DJI hits a new high, the DJT is expected to follow closely). In early June, the DJI hit a recovery high (from the March lows) while the DJT hit a double top. The DJT's inability to hit a new high was a Dow Theory non-confirmation Since that time, both indices have been falling (now they are confirming the current downtrend).
No comments:
Post a Comment