Dow Theory: Non-Confirmation of Rally?

By Dr. Declan Fallon

Brett Steenbarger discussed a bearish non-confirmation for the new high in the S&P (SPY) with respect to emerging markets (EEM).

[click images to enlarge]


Another tick in the nervous bull column is the non-confirmation between the transports (IYT) and the Dow (DIA).


Volume patterns between the transports and the Dow are also different; the Dow has shown respectable volume on its new high, while the transports have traded insipid volume since breaking $65 at the start of August.



Buyer beware.