"Dow Theorist" Alert

The followers of "Dow Theory" will be raising their eyebrows ... Dow Jones Transportation Average (DJTA) moves and closes into new bear market lows. (IBM) Dow Jones Industrial Average (DJIA) closed just some 100 points above November 2008 lows ... If DJTA holds here and DJIA moves below (closes below) 7449, errrrr ... Dow Theorists WILL SELL!

Watch for a decisive move. "Strong tactical trading hands" will use support levels to buy, but will be quick to reverse, if not a strong move. The more we are testing the support levels, the higher the probability that it will break to downside...

Here is the up-to-date DJTA at StockCharts.com. Click on chart to enlarge ...


Here is the up-to-date DJIA at StockCharts.com.


NOTE! The Point & Figure Chart suggests the pattern of double bottom breakdown for both DJIA and DJTA on 17th of February 2009!

Discipline over confidence!