That rally may not be sustainable, based on the venerable " Dow Theory ."
The century-old Dow Theory looks at the relationship between the Dow Industrials and the Dow Transports , and argues that market trends must be confirmed by both groups.
In other words, if the Dow Industrials are going lower, then Transports most also be falling to confirm a prolonged negative run.
Right now, investors are presented with the Dow Industrials at all-time highs and Transports barely positive for the year.
FDX 5D mountain FDX year to date To be sure, other market trends paint a more positive picture.
Persons:
Jonathan Krinsky, Mark Mahaney
Organizations:
Dow Jones, Dow, Dow Transports, Transports, FedEx, UPS, Tech, Energy, NBA