Saturday, December 27, 2014
INDU Dow Industrials TRAN Dow Transports Daily Charts Dow Theory Confirmation Pending
Dow Theorists are watching the Dow Industrials and Dow Transportation Indexes to see if the trannies can confirm the new record highs in the industrials. The indexes must confirm each other with new highs to prove that the broad market upside is guaranteed ahead. The Dow prints a new high in July and the trannies confirmed. Ditto in September and then in early November. All is right with the bullish world. Then trannies print another new high (due to the plunging oil prices) at Thanksgiving as November ended. The Industrials confirmed the Transports early December. What a joyous rally it is. Then the Dow runs up for a new all-time high on Friday. The wine is flowing like water. Dow 18K occurs as traders celebrate and worship at the global central banker's altar.
However, there is fly in the soup. The trannies have not yet confirmed the enthusiasm in the industrials. TRAN closes at 9199.65 failing to overcome the all-time closing high at 9202.84 on 11/25/14 as well as the all-time intraday high at 9412.83 on 11/28/14. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.