Dow Theory non-confirmations attend the start of every big bear market
By Elliott Wave InternationalDow Theory is a time-honored market analysis tool. Its name comes from Charles H. Dow, co-founder of The Wall Street Journal.
In fact, The Wall Street Journal provided a capsule summary :
But EWI's analysts say this historical indicator is still highly useful to investors.
The Elliott Wave Theorist showed charts of two historic bear markets, and both sported dramatic Dow Theory non-confirmations. Here's the first one (N/C stands for non-confirmation):
A Dow Theory non-confirmation does not accompany every stock market downturn, but the historical record shows that it does attend the start of every big bear market.
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