Intraday Market Thoughts

Archived IMT (2009.07.22)

by Ashraf Laidi
Jul 22, 2009 17:28

FX players who usually keep an eye on stocks must bear in mind the Dow Theory, a key tenet of which states that in order for a buy signal to be validated, the Dow 30 average must be confirmed by the Transportation index. Thus, although the Dow 30 has hit a 6-month high of 8,949, the Transportation index has yet to retest its May high of 3,458. This also coincides with 3,432, which is the 38% retracement from the May 2008 high of 5,536 high to the March low of 2,128.


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