FedEx creates a hurdle for stock market bulls with the Dow at record highs

  • 📰 CNBC
  • ⏱ Reading Time:
  • 24 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 37%
  • Publisher: 72%

Investment Strategy News

Stock Markets,Dow Jones Industrial Average,Dow Jones Transportation Average

The Dow Jones Industrial Average surged to a record above 42,000 on Thursday. That rally may not be sustainable, based on the 'Dow Theory.'

The Dow Jones Industrial Average surged to a record above 42,000 on Thursday. That rally may not be sustainable, based on the venerable " Dow Theory ." The century old Dow Theory looks at the relationship between the Dow Industrials and the Dow Transports , and argues that market trends must be confirmed by both groups. In other words, if the Dow Industrials are going lower, then Transports most also be falling to confirm a prolonged negative run.

FDX 5D mountain FDX year to date To be sure, other market trends paint a more positive picture. "SPX closed above 5700 yesterday, and the equal-weight RSP also closed at a new all-time high. Therefore, the 'false breakout' on the known FOMC event we thought would transpire clearly didn't play out," BTIG chief market technician Jonathan Krinsky wrote. "In the last week, we have seen new 52-week highs for every sector except Tech and Energy.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in US

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

FedEx Earnings: Ultimately, FedEx is a Margin and Free-Cash-Flow StoryStocks Analysis by Brian Gilmartin covering: FedEx Corporation, Crude Oil WTI Futures. Read Brian Gilmartin's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »