Chart of the Day - Monday, November 28th, 2022

Today’s Chart of the Day was shared by Stacey A. Lee (@BBaxter2020). The Dow Jones Industrial Average (top) has been the only major index to break above its August highs. However, that breakout is failing, considering the Dow is back below its August highs as of today's close. As we know, failed breakouts often lead to sharp moves lower. Stacey points out another red flag, which is the fact that Transports (bottom) never confirmed the breakout above the August highs. According to the tenants of Dow Theory, a new uptrend has not been established until Transports make a new swing high along with Industrials.