Dow Jones Averages Battle For New Highs
Andrew Thrasher | Sep 03, 2014 07:29AM ET
I apologize for the lack of content on the blog on on Twitter. But I’m now back from vacation and while I had a great time spending last week with my wife’s family in New England, it’s always nice to be home.
Even while the bears sound off on the volume last week, we saw the S&P (SPDR S&P 500 (ARCA:SPY)) trek higher and make fresh highs. While volume can be an important tool, we’ve been seeing decreasing volume for nearly the entire bull market off the 2009 low, which makes it a tough bell to rink to signal the end of the run. As The S&P and NASDAQ continue marching, the Dow Jones Industrial Average (DIA) remains under its prior high.
Those that follow Dow Theory, while among other things, look for the Transports and Industrials to confirm each other’s moves. Yesterday we had the Transports squeak out a new high on both a closing and intraday basis.
It’s not very much of a surprise that the Transports are attempting to set a fresh high while the Industrial Average remains a couple dozen points below its own. Since October 2012, the Transports have been outperforming its Dow counterpart.
Now that we’ve seen TRAN breakout I’ll be watching if SPDR DJ Industrial Average (ARCA:DIA) follows, as it has done for the bulk of the bull market. The Dow Industrial Average is close enough to its prior 52-week high that a divergence does not look likely, but we’ll let price confirm these expectations.
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.