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We don't have to be experts in Dow Theory
to see the negative divergence between the
DJTA and the DJIA. In fact, the DJTA thrust
to new highs (perhaps in reaction to falling
oil prices) has left the DJIA in the dust.
Although the Industrials could play catch-up
in a hurry, as of this moment, that average
is a LONG WAY from confirming the DJTA
thrust to new highs-- 457 points, or 4.5% to be exact... to confirm a Dow Theory Buy
signal. Once the DJIA hurdles key resistance
between 10,620 and 10.720, the odds of
a vertical thrust to new highs increases
dramatically. Conversely, if the Industrials fail
to confirm the DJTA, and reverse, Dow Theorists
will telling us to run for our financial lives... if
they aren't already. MJP 11/03/05 2:30 PM ET
DJIA: 10,528; DJTA: 3,982
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