Finally, it happened. Last Friday the Dow closed at a new high for the advance at 13,610.15. The new high was not confirmed by the Transports. The new Dow high was above its recent September peak of 13,596.93. In order to confirm the Dow, the Transports would have to close above their own comparable September peak of 5215.97.
Obama's poor performance during the first debate has put all the more pressure on Bernanke to make up for Obama's sad showing by doing all he (Bernanke) can, to move up the Dow and buoy employment. This will be particularly interesting, since the Dow is at a new high for the move, but unconfirmed by the Transports. In other words, this is a situation which ordinarily would bring on trouble.
So I am wondering whether the Fed's manipulations will prove strong enough to overcome the problems brought on by a Dow Theory non-confirmation.
It should ... Log in or subscribe to continue reading.
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