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Friday, July 24, 2009

Russell: Dow Theory signals bullish market

Quick note: I was catching up with Richard Russell's Dow Theory Letters last night, and Russell made prominent mention of the fact that the Dow Transports and Dow Industrials had both moved above their previous June highs, thereby signaling a bullish confirmation under Dow Theory.

Prieur du Plessis at Investment Postcards has more to say about the Dow Theory bull market signal.

Those who've followed this blog for some time know that your author is an interested follower of Richard Russell's newsletter and a student of Dow Theory, but certainly not an expert in this area.

Excellent introductions to the subject of Dow Theory can be found in Victor Sperandeo's book, Methods of a Wall Street Master, and John Murphy's Technical Analysis. You may also wish to consult the original works of the Dow Theory pioneers (Hamilton, Rhea, etc.) listed in Russell's historical overview.

Related articles and posts:

1. New bull market? - Tim Wood at Financial Sense.

2. Charting the markets: S&P 500 - Finance Trends.

3. A rally with serious muscle (?) - Finance Trends.