TRAN Dow Transports and INDU Dow Industrials Daily Charts; Dow Theory Upside Confirmation

The Dow Jones Industrials, INDU or DJI, are in a steady uptrend the last few months printing higher lows and higher highs. The trannies confirmed the highs in the industrials into July so the broad market moves higher fully endorsed by Dow Theory upside confirmations. Then a bumpy road started.

The industrials kept printing higher highs but the transports dropped like a stone and began printing lower lows and lower highs a downside trend. The industrials began to follow the trannies lower and then in mid-August the industrials began rallying again and punched out new record highs this month. The trannies gap higher in early September trending higher with higher lows and higher highs.

Then bingo. The Dow Jones Transportation Index prints a new all-time record high at 9796 today. The new record high confirms the new record highs in the industrials from a Dow Theory perspective. Computerized buying programs clicked into gear supporting stocks in the afternoon. Everything keeps going the bulls way as the stock market monthly charts continue to hint that a multi-month and multi-year stock market top is in progress.

Watch the trannies closely to see if they roll over to the downside, or not. Also, since the transports just printed a new record high, look for the industrials to print a new all-time record high to provide another confirmation that the bull party will continue. 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.