Today the DJ Industrial closed above 14,000 at 14,009.80. The last time it has closed above 14,000 was on October 12, 2007 at 14,093.08. Obviously, there were many fanfares from the media and from the talking heads on this milestone. But what was missing today and on January 29, 2013 is the lack of mentioning about the failure of the DJ Transportation index making a new closing high. To the Dow Theory followers, these non-confirmations are the sign of a market forming its top or it has topped. From today’s close, the DJ Industrial is 154.73 points from its all time high. The market most likely will not top out until after the DJ Industrial has closed above the October 9, 2007 high of 14,164.53.
Here is an updated chart of the major indices:
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| (Click on the chart to enlarge) |
While the market waits for the DJI new all time high, be defensive. The market could pullback and lures some fresh money into the market before it tops out, or it could simply run up to a new non-confirmed all time high next week and start a new down trend.
