Dow Theory Signals Bull Market in U.S. Stocks

The recent 52-week highs for the Dow Jones Industrial Average and the Dow Jones Transportation Average indicate a positive sign for a broader bull market, according to analysts. The Dow industrials are on track for a 12th straight day of gains, while the transportation index is up 21% this year. Dow Theory, a strategy dating back to the early 1900s, suggests that if two averages reach new highs in a short period, it indicates a higher stock market. Analysts believe that the recent breakouts in both Dow Jones indexes have triggered a Dow Theory buy signal, adding to the evidence of the sustainability of this bull market.