So far, none of the traditionally bearish Dow Theory signals have manifested. While transports show some weakness, traders remain cautious ahead. Consequently, the equities market has been slowly marching ahead, without the full blown optimism in a traditional market rally.
Polcari suggests equities investors should remain cautious and conservative ahead.
“No need to go gangbusters and reach for stock — patience is a virtue and taking the time to assess your plan and take strategic advantage of weakness will be the winning strategy,” Polcari said.
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Max Chen contributed to this article.