Menu Close

Even Charles H Dow would advise caution!

Charles H Dow, the father of modern day technical analysis would advise caution for now in US equity markets.

‘Dow Theory states that the market is in an upward trend if one of its averages (e.g., industrials or transportation) advances above a previous important high and is accompanied or followed by a similar advance in another corresponding average. For example, if the Dow Jones Industrial Average (DJIA) climbs to an intermediate high, an investor might watch the Dow Jones Transportation Average (DJTA) climb to confirm an upward trend.’