Dow Theory Gives Sell Signal
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