New Dow Theory Signal - What Does It Mean? | Seeking Alpha
Chris Ciovacco has written another excellent article about why the stock market will probably continue to rise. He used 50-day charts comparing 2014 to the correction of 2011 and the bear market of 2008-2009. We currently have an upward sloping 50-day line in 2014 while the 2011 and 2008 charts showed trouble in the market.
Chris also talked about how the Transportion Index (IYT) has confirmed that stocks will continue the bull trend. Since transportation stocks and the Dow stocks are tied together by infrastructure, the upward bias of both indexes provides bullish confidence. Like Chris said, reversals tend to be a process rather than a one day event. So, don't be spooked out of the market when bad news happens because it will usually be resolved in a reasonable manner as long as the economy is doing okay.
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