Dow Theory Is So Yesterday

The DJIA is down 2.1% from its record high of 41,198 reached last Wednesday (chart). The DJTA was down 1.6% today, remaining below its record high in early 2022. According to Dow Theory, the DJTA needs to break out to a record high to confirm the DJIA's rise to this point and support further advances. The theory is that a sustainable bull market in stocks needs to be based on a broad economic expansion including both industrial and transportation companies.

Today's drop in the DJTA was led by UPS. It fell 12% after reporting weaker-than-expected profits and revenues in Q2, price cuts in response to declining volumes, and lower guidance.