March 15, 2018

‘Dow Theory’ Warning Signal Spells Trouble for These 5 Stocks


Post-payroll enthusiasm is fading fast as chaos returns to the Trump administration



U.S. equities are testing into the red as I write this on Tuesday, rolling over as the post-payroll enthusiasm fades and fears regarding Federal Reserve interest rates hikes and chaos in President Donald Trump’s administration returns.

The Dow Jones Industrial Average is stalling out once more near its 50-day moving average; setting up a possible test of its 200-day moving average and the February lows in the days and weeks ahead. Not only is the Fed decision looming, but Washington needs to iron out another budget deal before the end of the month.

With the Dow Industrials struggling, it’s worth noting that both the Dow Jones Utility Average and the Dow Jones Transportation Average are struggling as well. That sets up a possible “Dow Theory” warning signal that could spell trouble for the broad market.

Here are five key Dow stocks that are showing weakness:






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