The Market According to the Dow Theory

3/26 - "Dow Theory was, as you might guess, developed from analysis (technical in nature) done by Charles Dow. Two of the basic tenets of Dow Theory are trends (up and down) and signals (buy and sell).

Mr. Dow looked to the industrials and the rails to confirm each other in order to provide buy/sell signals and to confirm up/down trends. For purposes of analyzing Dow Theory, we now look to the Dow Jones Industrial Average and the Dow Jones Transportation Average."

"All that remains for a Dow Theory buy signal is for the Industrial Average to best its February 1st closing high of 12,743. If the Industrials can overcome 12,743 on a closing basis, then a new uptrend would be in place..."