$$ Dow Can't Take Out April High

The Dow closed at 11205 at the peak in late April.  

On October 18, the Dow closed at 11143.  In the 11 trading days since (with POMO and heading into an election), the bulls could not manage to push the Dow 63 points over the hump.  Today the Dow closed at 11188.

While Terry Laundry usually refers to the S&P 500, he has spoken of a "double top" ending to T13.  I think it's fair to say that 11205 and 11188 are double tops with respect to the Dow.  

On the other hand, the Dow Transports closed today at 4818, eclipsing their April high close of 4806.  The breakout of one index but not the other is is known as a "non-confirmation" in Dow Theory parlance. 

We await the election results and the Fed statement tomorrow afternoon.  Please also note that while the Fed statement is only a few paragraphs, members of the Fed will be making all sorts of speeches beginning on Friday which should clarify any ambiguities in their statement tomorrow. 

$$ Dow Theory Confirmation Alert

We are very close to a Dow Theory up trend confirmation.  The reason I point this out is because if we get the confirmation, you can expect some technical buying as well as capitulation of shorts which could produce a steep climb (at least in the short term) in all the indexes.

Strict Dow Theory only uses closing prices, but I will give you both the high and the close.  Here is today's DJIA vs. late April:

Close

11164 today (41 points away)

11205 April

High

11247 today (11 points away)

11258 April

Here is the information for the Dow Transports:

Close

4774.86 today  (31 points away)

4806.01 April

High

4823.98 today (already exceeded April)

4812.86 April