Seanote,
Are you looking at this as a pause/pullback or a rollover?
Are you looking at this as a pause/pullback or a rollover?
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Trading Journal - July
- Thread starter Seanote
- Start date
The Dow yesterday halted at 8255, just below its 50-day moving average, which stands at 8279. The Dow low of 7286 (Oct. 9). At the top end of the rally we have yesterday's closing high of 8255. The Dow will either break out above 8255 or it will break down below 7286. The Transports will have to confirm. Yesterday's high close for the Transports was 2286. The Transport low of Oct. 9 was 2013.
Originally posted by dgabriel
Transport confirmation is old old Dow Theory, which made sense during the Industrial heyday, but in today's economy, so highly service and information oriented, transport confirmation is less relevant than it was decades ago.
The Transports are the only sector that have yet to confirm lows over the past 2 years. I think that alone is very important in relation to the Dow and does carry significant weight for future decline in the Dow. I agree with your comment that today's economy is based off of sectors that have more implications on the indexs compared to the Transports, but at this point in the market they need to be paid attention to.