Dow Theory Gives Sell Signal

By on August 4, 2011

On Tuesday the Dow Industrials and Dow Transports broke to new yearly lows confirming a Dow Theory Sell Signal.  For decades Dow Theory has been used by its practitioners to determine the market’s trend.

Regarding downside targets the New Low Observer notes:

Based on the chart above, the 50% principle, or law of action and reaction, indicates that the next downside target at 38% is 10,417 and at 50% is 9,679. We first must reach these downside targets in order to then project the next stage of the decline.

Read More: New Low Observer, Yahoo! Finance

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>