Tuesday, May 19, 2015
INDU Dow Industrials and TRAN Dow Transportation Indexes Daily Charts Dow Theory Non-Confirmation Continues
The non-confirmation from a Dow Theory perspective continues for the industrials and trannies. A tired and true stock market indicator for decades is that equities are in a robust rally mood as long as the Dow Industrials and Dow Transports continue making new highs confirming each other's moves. The green dots show the Dow Industrials making higher highs since last December. TRAN, however, confirms INDU at the start of the year but tumbles lower ever since resulting in a non-confirmation of the robust stock market rally.
The transports need to recover to 9250 and higher to confirm the move higher in the industrials and add credibility to the ongoing, never-ending, central banker-fueled US equity rally. 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.