Thursday, July 1, 2010

Dow Theory Bear Market Signal Triggered

At least according to some interpretations of the venerable Dow Theory, a bear-market signal was generated at Wednesday's close, when both the Dow Jones Industrial Average (DJIA 9,774, -96.28, -0.98%) and the Dow Jones Transportation Average (DJT 4,008, -33.65, -0.83%) closed below their previous correction lows of early June, writes Mark Hulbert.

This interpretation appears to be the one favored by two of the Dow Theorists tracked by the Hulbert Financial Digest: Jack Schannep, from TheDowTheory.com, and Richard Moroney, of Dow Theory Forecasts.

The third Dow Theorist that the Hulbert Financial Digest identified as having already turned bearish, and so today's action is mere confirmation of that bearish trend. He is Richard Russell, editor of Dow Theory Letters.

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