September 7, 2016

Dow Theory Update for September 7: The Transports confirm the primary bull market signal of August 11

Manuel Blay



The Transports remain, though, below the previous bull market high of 8109.19

US STOCKS
The primary and secondary trend is bullish as explained hereand here
The primary bull market signal of August 11th was given without the Transports’ confirmation (only the SPY and Industrials broke up their secondary reaction highs). Today the Transports have closed at 8057.60 and hence now we have triple confirmation. However, the Transports remain below the previous bull market closing high of 8109.19. A breakout of this latter figure would be a significant bullish accomplishment.
Recent declines did not fulfill the “time” requirement for a secondary reaction. I don’t even bother to calculate the “extent” requirement. Furthermore, the SPY is flirting with higher highs.
Here you have an updated chart
Dow%2BTheory%2B7%2Bsept%2B2016
Recent declines in stocks have not resulted in a secondary reaction
 
GOLD AND SILVER
The primary trend is bullish (Dow Theory signal of March 17th, 2016), as reported here and here.
The secondary trend is bearish (secondary reaction against the primary bull market), as explained here.

GOLD AND SILVER MINERS ETFs
The primary trend is bullish as explained here, and more recently here
The secondary trend is bearish (secondary reaction against the primary bull market), as explained here.

Sincerely,
The Dow Theorist

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