Investors tend to follow the Dow Jones Industrial and Dow Jones Transportation to gauge the economy and the popular stock market signal, “Dow Theory.”
Though laggards this year, both indices remain important and may be nearing a crossroads.
In today’s 2-pack, you can see that these popular stock averages have rallied back to test their respective highs at each (1).
In fact, the Dow Transports are testing dual resistance (prior highs and 261.8 Fibonacci extension level).
As well, the Dow Industrials have been susceptible to past “monthly” reversals from this price area.
So a reversal this month would raise the prospect for “double top” patterns. Let’s just say that stock bulls are hoping these Dow Indices are not double topping!