A more in-depth post will follow soon
On 7/18/23, the Dow Industrials closed at
34,951.93, surpassing its previous closing high of 11/30/22 at
34,589.77. This breakthrough confirms the Dow Transportation, which
achieved the same milestone on 7/10/23. The higher confirmed highs
reaffirm the BUY signal triggered by the Dow Theory on 11/8/22,
indicating a long-term bullish implication for the market. However, now
is not the opportune moment to buy, as a secondary reaction could occur
at any moment. The market is overbought in several time frames and ready
to take a breather.
You can find the complete Dow Theory
record according to our rendering, which has been verified in "Technical Analysis of Stock Trends,"
8th Edition, by W.H.C. Basseti (pages 49-51). The record can be
accessed HERE.
I
find it interesting to observe that there are numerous individuals
claiming to be Dow Theorists, asserting that the current bull market is
being signaled at this moment, despite it being more than 14% higher
than our initial Buy signal. However, it is important to clarify that on
7/18/23, the bull market was indeed reaffirmed, while the Buy signal
was originally issued a considerable time ago.
Sincerely,
Manuel Blay
Editor of thedowtheory.com
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