INDU Dow Industrials Daily Chart New All-Time Record Closing High Triple Top

The Dow Industrials finally print a new record all-time high and new high for 2014. The chart shows the triple top now in place as price continues to fight for an upside breakout. Some say there are no such things as triple tops. In other words, price will simply continue higher now. Others say triple tops are ominous and signal the end of the road. Keystone does not consider triple tops as a reliable indication since one-half the time price will break up and out and the other one-half of the time price failure occurs.

2013 ended at new all-time highs on 12/31/13 with the intraday all-time high at 16588.25 and all-time closing high at 15576.66. The closing high for 2014 in early April on 4/2/14 is 16573.00. The intraday high for 2014 and current all-time intraday high is 16631.63 on 4/4/14. Back on 4/4/14 it appeared to be a slam-dunk that a new all-time closing high would occur above the 15576.66 but that did not occur. Instead, stocks collapsed off of that intraday high and closed far lower. This drama set the stage for yesterday's theatrics where price came up to end the day at a new all-time closing high at 16580.84 on 4/30/14. Price did not print a new intraday all-time high, however; the 4/4/14 all-time high print at 16631.63 continues to rule the roost.

The new all-time closing high confirms the higher highs in the Dow Transports and provides a confirmation signal for the market rally from a Dow Theory perspective. New highs in the trannies must be confirmed by new highs in the Dow and visa versa. The Dow has lagged for four months but finally prints a new closing high. Interestingly, TRAN now needs to print a new high to confirm the Dow and prove that the rally plans to continue. On 4/23/14, TRAN prints the all-time closing high at 7742.26 and all-time intraday high at 7814.92. TRAN is printing 7715 as this is typed with a HOD today at 7749.79. So price took a peak above the prior closing high at 7742.26 but the day, the week, and perhaps next week, will have to play out to see if the bulls can create a new tranny high. If so, the Dow Theorists will be looking for further upside in markets with the SPX heading above 1900 and Dow heading upwards to 16.8K and higher.

Watch to see if the triple top disappears with new highs making for happy bulls, or, for the triple top to create a spank down and weaker markets ahead. The all-time high in the Dow at 16631.63 is very important. Bulls will rock and roll if this is taken out. Bears remain in the game as long as this high is unchallenged. Of course the all-time closing high at 16580.84 is important especially for today to see if the bulls can print another new all-time closing high, or not. The Dow is printing at 16580 as this is typed.

The red lines show negative divergence across the multi-month time frame but the bulls are creating some near-term upside juice. Price may experience continued buoyancy in the near-term but overall weakness would be expected as the days turn into weeks going forward. The bulls need a strong break out to the upside and the RSI to head higher to the 70+ level which will indicate a stronger near-term rally in progress. 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.

Note Added 12:00 PM:  Equities are flat today. The SPX all-time intraday high is 1897.28 on 4/4/14 and all-time closing high is 1890.90 on 4/2/14. The HOD today is 1888.59 so watch to see if a new all-time closing high in the SPX occurs today to reinforce the Dow joy, or not. The 1891 level is strong resistance for the SPX.

Note Added 5:29 AM: The Dow, SPX and TRAN are unable to print new all-time highs in the Thursday session. Watch the prior highs listed above especially the trannies.