Dow Theory is built on the concept of confirmation. The Dow Transports should confirm a higher high in the Dow Industrials and visa versa. Failure to confirm signals that something might amiss. The Dow Industrials has been forging new highs throughout the month and the Dow Transports just made it above its January high to finally confirm. Better late than never.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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