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ATTENTION
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Commentary
2/14/11
Divergence Resolved
Charles Carlson, CFA
Editor, DRIP Investor Newsletter
In last week’s column, I stated that the Dow Jones Transportation Average had diverged from the Dow Industrials in that, while the Industrials had continued to move to new highs, the Dow Transports were trading below their January 13 high of 5229.
Divergence, under the Dow Theory, can lead to a trend change or a correction.
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