Last week saw the D-J Industrial Average and the D-J Transportation Average hit joint new highs. Ordinarily, that action should present a valid signal for further highs. Only two items give me pause.
The first is the advance-decline line for the NYSE. The chart below shows this A-D line running into resistance at a triple-top delineated by the horizontal blue line, which I have drawn in on the chart.
The second questionable item is the D-J Utility Average. This average appeared in 1929, so it was never incorporated into classic Dow Theory. Nevertheless, the Utility Average has a history of topping out three months ahead of the rest of the market. Although, on occasion the Utilities have topped out simultaneously with the rest of the market. I show the Utility Average below, and it does indeed appear to have topped out.
I almost hesitate to write the following, but I will report that after reading ... Log in or subscribe to continue reading.
Premium Content Notification
A subscription is necessary to access premium content.
Please use the button below to subscribe in order to access all premium articles