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Why Wall Street’s oldest market timing system is bullish
The bull market on Wall Street remains intact, recent weakness notwithstanding. That at least is the judgment of the Dow Theory, the oldest stock market timing system that remains in widespread use today. At a minimum, a Dow Theory sell signal is several weeks away. That’s because, even though the Dow Industrials DJIA, +0.97% has fallen more than 900 points in just seven trading sessions, the market would have to jump over two more hurdles before the Dow Theory would declare a bear market to be in effect. It first would have to mount a significant rally that ultimately fails to surpass its early-December highs, and ... (full story)