The movement of the Dow Jones Industrial Average and Transportation Average was extraordinary on Thursday March 30th. According to Dow's Theory, the indices only needed to close above 8280.58 for the Industrials and 3203.74 for the Transports. Both averages traded above these levels during the day but could not hold on for the close.
As I said in my previous posting of March 27th, if these levels can be breached the stock market is likely to go to the 3717.26 level for the Transports and the 9086.21 level for the Industrials. This would have been a stepping stone towards reaching the 10,000 level in the Dow. However, the action of the Transports and the Industrials was somewhat alarming. Both indices crossed above both levels by a wide margin but closed below the most important Dow Theory levels. It is hoped that the market can establish a trading range around the current levels. Otherwise, we're about to face significant resistance that could push the market back to the 6400 level. Touc.
As I said in my previous posting of March 27th, if these levels can be breached the stock market is likely to go to the 3717.26 level for the Transports and the 9086.21 level for the Industrials. This would have been a stepping stone towards reaching the 10,000 level in the Dow. However, the action of the Transports and the Industrials was somewhat alarming. Both indices crossed above both levels by a wide margin but closed below the most important Dow Theory levels. It is hoped that the market can establish a trading range around the current levels. Otherwise, we're about to face significant resistance that could push the market back to the 6400 level. Touc.
