"Dow Theory Buy Signal: Stock Market Outlook Surges with 100-Year-Old Indicator"
LPL Research has identified a buy signal in the stock market based on the century-old Dow Theory. The theory suggests that the recent breakout in both the Dow Jones Industrial and Transportation averages confirms a broader market rally, indicating more upside potential. Historical data shows that after a Dow Theory buy signal, the S&P 500 has delivered an average 12-month return of 10.5% and a 6.6% gain over the following six months. The recent breakouts on above-average volume and momentum signals further support the idea of a continued rally.