As old as it is, DOW Theory still needs to be watched.
Today the transports finally rallied, and rallied hard. OSG (Overseas Shipholding Group) rallies 16.13%, CSX rallies 8.36%.
Keep in mind the transports still have further to rally to reconnect with the industrials. So while we saw a rally today that doesn’t change the fact that transports and industrials are still not moving in tandem – meaning we still have a correction on our hands. However, the more the transports rally the less of a correction we should see.
Markets hit another “psychological level” with the S&P closing above 1,400 at 1,402.59. DOW closes highest since December 2007 at 13,252.76.
Apple hits $600.01 then turns back down.
Still a lot of headwinds out there so best to keep majority of your powder dry.