Dow Theory Might Be Saying Game Over For Stock Markets
2022.10.10 14:48
Investors are really struggling to make sense of bearish yet wide-ranging economic data and varying analyst opinions.
Call it a sign of the times.
It’s been a very difficult past 12 months for literally everyone. And this has greatly affected stocks this year. And it could get worse.
That’s right; it could get worse. Today’s chart 3-pack highlights 3 Dow indices that are decisively bearish… and attempting to trigger a Dow Theory sell signal.
Dow Theory Components Chart
As you can see, the , , and peaked at the top of their respective price channels and are now trading below their 40-month moving averages at each point (1).
A breakdown of the Dow Jones Industrials and Transports triggers a Dow Theory sell signal. And with Dow Utilities also struggling, it seems like a critical time for investors to remain vigilant. Stay tuned!
