Dow Theory Suspense Builds as Stocks Near 1880s Crucible
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Technical analysts have any number of computer-driven tricks to attempt to read the tea leaves of the stock market, yet a theory developed by Charles Dow in 1884 still captivates them 130 years later.
Under his concept known as Dow Theory, transportation and industrial stocks must rally together in order to confirm that market gains will last and grow. Today’s advance sent the Dow Jones Transportation Average as high as 7,608.07, a record on a closing basis. The Dow Jones Industrial Average climbed as high as 16,565.73, just 11 points below its last record reached on Dec. 31.