A Century-Old Stock Signal Is Flashing Buy as U.S. Transports Surge
- Dow industrial and transportation gauges peaking at same time
- Blue-chip index has rallied 9.7 percent since last instance
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Equity investors wondering whether the post-election rally in the U.S. stock market has gone too far too quickly can take solace in a technical indicator suggesting more gains lie ahead.
The Dow Jones Industrial Average and the Dow Transportation Average both closed Wednesday at all-time highs for the for the first time in more than two years. According to Dow Theory, simultaneous records in the groups trigger a buy signal for U.S. stocks.