Waiting on the Industrials

November 2005
Dow Theory Forecasts;11/28/2005, Vol. 61 Issue 48, p3
The article states that the market's advance continues, with the Dow Industrials moving within 1% of the March high of 10,940.55. A close above that level would reconfirm the market's bullish primary trend under the Dow Theory, while a failure to reach new highs would heighten the risk of a market correction. New highs are central to the Dow Theory. When an index surpasses a previous high point, it means the demand for shares exceeds supply, even at levels where selling pressures have emerged in the past. Dow Theory reconfirmations are not always the best time for aggressive buying, but a close above 10,940.55 would increase confidence in current strategy of looking for buying opportunities on a case-by-case basis.


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