Zacks highlights commentary from People and Picks Member «InvestmentMAGE».
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A Dow Theory Sell Signal?
Two out of three Dow Theorists have seen a sell signal in the Dow's recent activity. Hulbert Financial Digest follows three Dow Theory Proponents. Richard Russell, who writes the Dow Theory letters announced in his letter on 29 May:
"The Dow Jones Industrial Average recorded a high of 13,279.32 on May 1, 2012. This Dow high was not confirmed by the Transports. The two averages then turned down and broke below their April lows. This action confirmed that a primary bear market is in progress -- it was a textbook bear signal."
While the other two Dow Proponents adamantly insisted there was no signal, Business Insider interviewed Richard Moroney of DowTheory.com on May 31.
"Yes, we don't think a sell signal has been reached," he said.
One Dow Proponent identifying the signal and two other Dow Proponents not, prompted me to write this introductory article on May 31.
Then on June 4, Dow Theorist, Jack Schannep, editor of TheDowTheory.com threw in the towel and declared Dow Theory to be in the bearish camp.
I've been scanning the news looking for any new feedback from Richard Moroney, the last hold out.
If I see anything I will report it here. If you see anything, please post it below.
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