Investor Alert

Market Pulse Archives

Oct. 26, 2021, 4:26 p.m. EDT

For a fresh Dow Theory buy signal, the Dow transports missed it by that much

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Dow Jones Transportation Average (DJT)
  • X
    Dow Jones Industrial Average (DJIA)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

The Dow Jones Transportation Average /zigman2/quotes/210598063/realtime DJT -3.63% was chugging along in record territory Tuesday, putting them on track to trigger a fresh Dow Theory buy signal for the first time in more than five months, for all but the last two minutes of the trading day. A basic tenet of the Dow Theory is that no important bull or bear market signal could be triggered unless both the Dow transports and the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -2.53% flashed the same signal. The Dow transports rose as much as 239 points, or 1.5%, to an all-time intraday high of 16,112.87, well above the May 7 record close of 15,943.30, but a late-day pullback took it down to a 62-point, or 0.4% gain, to close at 15,936.69, or 0.04% below the record. Meanwhile, the Dow industrials closed up 16 points, or less than 0.1%, but reached a third straight record close. If the Dow transports managed to hold its gains to reach a record of its own, it would've been the first time since May 7 that the sister indexes closed at a record on the same day. And as Piper Sandler technical market strategist Craig Johnson said, a Dow transports breakout to a record close "would trigger a Dow Theory buy signal."

US : Dow Jones Indices
-610.57 -3.63%
Volume: 207.82M
Nov. 26, 2021 2:12p
US : Dow Jones Global
-905.04 -2.53%
Volume: 325.39M
Nov. 26, 2021 2:12p

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.