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Dow Theory: Buy Signal Within Sight
The Dow Jones Transportation Average seems on course for a new record high, and that, some chart watchers say, means an important “buy” signal is within sight. For technicians, the century-old Dow Theory states that both the Dow Transports and the Dow Jones Industrial Average need to make new highs on a closing basis to confirm that an uptrend has staying power, according to S&P Dow Jones Indices. Meanwhile, the Dow Industrials is still about 0.1% shy of a record high. “Ideally, the Dow [Industrials] would make a new high in a few days, and then we’d have a confirmed Dow Theory ‘buy’ signal,” said Ken ... (full story)