Dow Theory is one of the most important trend following theories ever. As market evolved, the concepts of Technical analysis became more elaborated and complex, most essential foundation was forgotten in the Market literature.Even with much complexity nothing beats the Dow Theory on odds and logic. It’s around for over 100 years and still important as it is, even today
Currently Both the US Indices S&P500 and Dow Jones are in positional sell mode since 3rd March 2014 and trading very close to the resistance zone. Currently the resistance zone coming around 1882 and 16473 respectively. Position will be reversed to positional buy mode if the resistance zone breaks on the hourly charts
30 Year Historical Dow Jones Monthly charts are shown. Interestingly Dow Jones is in bull market( i.e buy mode ) since the start of 2010. Long Term supports for the Monthly Dow Jones comes around 11400 zone. Also checkout that dow jones had turned to buy mode on the weekly timframe in Ichimoku weekly charts
Dow Jones maintains the ichimoku weekly charts is in buy mode for the past 3 weeks indicating the start of long term uptrend with long term supports built around 11289 zone.The Dow Jones Industrial Average returned YTD returns of 6.1% to the investors for 2011, best developed market returns for the year.
The National Stock Exchange (NSE) would be launching derivatives based on S&P and Dow Jones indices from 29 Aug, 2011.The National Stock Exchange (NSE) would be offering derivatives based on the S&P 500 and Dow Jones Industrial Average (DJIA) equity indices. These would be launched on Monday, 29 Aug, 2011. Derivative contracts based on global indices are being launched in India for the first time.