Understanding Dow Theory Signals for the Current Market

Becoming a savvy investor requires understanding the historical Dow Theory and its current implications for the market in 2024, as discussed in my latest video.

Exploring the traditional Dow Industrials and Dow Transports indexes, alongside a suggested modern update focusing on the S&P 500 and Nasdaq Composite, can shed light on market trends and potential signals for investors.

The traditional Dow Theory flashed a bearish signal in May 2024 due to a lack of confirmation between the two indexes.

However, based on the dynamics of the modern economy, I suggest adapting the theory to include the S&P 500 and Nasdaq Composite for a more accurate representation of market forces.

  • Are the original Dow Theory signals still as effective in today’s modern economy of technology dominance?
  • How does the traditional Dow Theory bearish non-confirmation signal, indicating weaker economic conditions, align with the market trends in 2024?

What do the equal-weighted S&P 500 and Nasdaq 100 indexes tell us about prospects for the major benchmarks going forward?

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Video: Dow Theory Signals

Twitter:  @DKellerCMT

The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.