Stocks opened in positive territory and slowly gained ground until about 2pm Eastern, when they began to sell off. The Industrials, which were up nearly 400 points midday, lost nearly all of those gains to close at 23,979, up 46 points.
The story was similar with the Transports, except their selloff started later in the day. Around 3pm Eastern they were up over a hundred points, but then a precipitous decline took them into negative territory literally five minutes before the close. During the last five minutes, the declines accelerated, causing the Transports to end the day down 27 points at 10,119.36.
The end result is that the Transports closed about 16 points below their prior February low, thereby confirming the Industrials and triggering a Dow Theory sell signal. We will elaborate on the significance of this as the week progresses.
Stock markets elsewhere were in bullish mode, with Brazil's Bovespa being the ... Log in or subscribe to continue reading.