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Dow Theory Might Be Saying Game Over For Stock Markets

Published 10/10/2022, 01:48 PM
Updated 07/09/2023, 06:31 AM

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 Dow Jones Industrials, Dow Jones Transportation, and Dow Jones Utilities 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!

Latest comments

Chris: all indicators are showing the Fourth Turning is here!
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