Thursday, February 19, 2009

Dow Confirmation Close at Hand

I mentioned earlier that the Dow Transports had broken below its November low. I now see that the sister index, the DJ Industrial Average is very close to also breaking below its Nov. low. It could happen tomorrow. If this will be a textbook case of Dow Theory confirming a continuation of the downtrend below the November lows.

The S&P 500 and the Nasdaq are still some distance above their Nov. lows but the number of canaries is growing. Since the Canadian TSX Capped Financials Index has already gone below its Nov. low the other Canadian Indexes will most likely follow as well.
A Dow Bear Trend Continuation Confirmation may be newsworthy enough to make the headlines.
This is additional technical evidence to support my expectation of the November lows being broken for all indexes.

No comments: