Monday, July 13, 2009

a bit of Dow Theory

in this morning's newsletter I outlined a short-term script for the Stock Market (basis S&P 500). if you must Know, I am bearish, but not mega-bearish (in the short-term). however I see this little non-confirmation of the Dow Transports to the Industrials, which, if not resolved soon, could have some bullish implications. I am not a huge devotee of Dow Theory, but the non-confirmation last month was one of many red flags signaling a turn, so I think it is only fair to take this new one into consideration also.