Cycle Trading

Dow Theory Confirmation refers confirming the direction of a trend in the stock market based on the analysis of the performance of two indices, the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA). According to Dow Theory, a confirmed trend is established when both indices move in the same direction.

The Dow already forming a higher high in January and is working on forming consecutive higher highs.

The Transports formed a higher high this week to confirm a Dow Theory trend change.