Since many are starting to talk about the “DOW theory”, I decided to look at the DJT index to see what has happened. In short the present bearish phase is not different than the DJIA I have been using. A recent correction in the DJT has also taken place at the same time as all other markets have been doing. So this just confirms, that the DOW theory may not be any help at all.
All my trend lines are based on the angle of the top trend line, with the middle line helping to determine the trend of at least one lower degree. At a minimum, we would enter Intermediate degree wave patterns when we get to the center line. At the 2000 price level, we have a huge base that would present an extremely bullish setup in the future. Any Cycle degree correction would have to slice through the bottom trend line, as all general markets I cover can go below 2011 bull market lows.
I’m not going to update the DJT on a regular basis, but it is another Index we can watch, to help determine the next big bearish bottom.