Dow transports make 3rd attempt at triggering Dow Theory sell signal
The Dow Jones Transportation Average making its third attempt at producing a Dow Theory sell signal, as tumbles 361 points to 10,093 in afternoon trade to fall below its Feb. 9 closing low of 10,136.61. Closing below that level would create a pattern of lower lows to go with lower highs, which the century-old Dow Theory suggests defines a downtrend. The index had dipped below that sell signal trigger level in intraday trading on March 28 and April 2, but recovered enough to close above the level. The Dow Jones Industrial Average already completed its half of the Dow Theory sell signal on March 23, when it closed below its February closing low. While the Dow industrials have bounced slightly since then, it remains well below the Feb. 26 peak of the previous bounce at 25,709.27.
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