[DbPhoenix]

Originally Posted by firewalker »

It seems to depend on where you get your charts... Bigcharts cash indexes show we've already reached the top of those congestions on the S&P and Nasdaq Composite.

Also when one creates them. These were done last weekend.

Did you mean to post a chart of the Dow utilities?

[Tams]

Dow Theory proposes Transportation will lead the Averages.

http://stockcharts.com/school/doku.p...sis:dow_theory

[DbPhoenix]

Originally Posted by Tams »

Dow Theory proposes Transportation will lead the Averages.

While that may be true, the transports are in the same condition as the industrials.

Why are you using ten-year-old charts?

[Tams]

Originally Posted by DbPhoenix »

While that may be true, the transports are in the same condition as the industrials.

i.e. we are still in the shxt hole.

:-(

Why are you using ten-year-old charts?

no, those are not my charts. ;-)
I swiped them from
http://stockcharts.com/school/doku.p...sis:dow_theory
for illustration purpose only.

[DbPhoenix]

Originally Posted by Tams »

no, those are not my charts. ;-)
I swiped them from
http://stockcharts.com/school/doku.p...sis:dow_theory
for illustration purpose only.

I don't know who wrote this, but it's a poor example. One doesn't start with a new high and begin the analysis there. One must look at the context, and the industrials -- unless one is severe with the trendline (the tl from '95) -- never even broke its trendline. But even if one were to draw the trendline so that price broke it, price recovered quickly and never broke the last reaction low.

This isn't to say that one can't look to the transports and utilities for guidance, but there's more to it than this.

[Tams]

[QUOTE=DbPhoenix;61085]...
This isn't to say that one can't look to the transports and utilities for guidance, but there's more to it than this./QUOTE]

agreed

[firewalker]

Originally Posted by DbPhoenix »

Also when one creates them. These were done last weekend.

Did you mean to post a chart of the Dow utilities?

No, my mistake, sorry