Dow Theory Throws Up A Warning Flag

This is a syndicated repost courtesy of The Felder Report. To view original, click here. Reposted with permission.
A version of this post first appeared at The Felder Report PREMIUM.
While investors celebrate new highs in the major stock market indexes there is one fly in the ointment that nobody seems to be paying much attention to. In fact, many are hailing the breakout to new highs as the start of a new bull market but students of history and more importantly students of Dow Theory are not so sanguine.
Charles H. Dow, founder of the Wall Street Journal and Dow Jones & Company, was one such avid student of the markets and market history. In a number of editorials published in the Journal, he outlined many of the truisms he discovered through his many years of research. One of those has since been dubbed, ‘The Dow Theory.’ Wikipedia explains:

This post was published at Wall Street Examiner on August 19, 2016.