week21 Dow is still an uptrend: A comparison between Dow Industrial & Dow Transport

Will be focusing on the mother theory of all Technical Analysis:

The Dow theory.



A theory which says the market is in an upward trend if one of its averages (industrial or transportation) advances above a previous important high, it is accompanied or followed by a similar advance in the other.

Based on the charts, it currently shows both industrial and transportation aligned; both are having a consolidation, although the industrial is leading the transport.

D1 Industrial

week21 Dow Jones D1 bullflag 170515

A simple day chart with bull flag illustrates. The chart is still trending up, on a zig zag basis. Price has completed the bull flag and is ready for upmove.

D1 Transport

The chart for Dow Transport shows a similar stable uptrend. Price however still has not completed the bullish consolidation flag. It can be said that it is lagging the Dow Industrial, but overall trend has been fairly aligned.

Charting of Dow Transport:



My conclusion is thus that the stock uptrend is still intact. in fact it is just getting ready for the next upmove.

It will be good to  adhere to classic TA theory of zig zag uptrend.

My friend , Mr FFI , a leading stock expert, has also posted on this. You may wish to read his analysis here:



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