With lot of talk about possible sell signal for the market due to the non-confirmation between the DJT and DJI recent price level. The Dow Theory is based on the premises that as long as the DJT makes a new high along with the DJI, then the present trend will continue. But if the DJI makes a new high while the DJT does not, then this divergence between the DJI and DJT signal a possible market top.
Recently, the DJI made a new 52 week high while the DJT didn't even get above the previous peak which is below it last high.
In this video, I explain how to use the Dow Theory along with other market indices to detect a possible market top.
If you do not see a video player on your screen, click on the title for this post and it will take you to the blog page where you can view the video.
