Today the Dow Jones Industrials reached an intraday high of 8927.13. This exceeds my prior Market Barometer target of 8774. For some reason the Industrials are able make higher highs. Unfortunately, the Dow Jones Transports continue to fail to breach the upside target. The Transports fell to 3360.14.
According to Dow's Theory, the action of the Transports is the most resounding evidence of the market's inability to go higher on a sustained basis. Each time the Transports get close to the 3405 level we get a pullback in the market. Additionally, the Transports fall by a greater percentage than the Industrials making it much harder to recover from any declines. We need full participation of the Transports to feel confident about the market direction being up.
I have changed the Market Barometer upside target for the Industrials to 8928. I don't see (showing my limitations) the Industrials going much farther than 8928 without the Transports exceeding the 3405 level. Touc.
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