Dow Theory Signals Sluggish Economic Recovery (VIDEO)

http://www.bloomberg.com/news/2012-03-11/dow-theory-converging-with-bond-market-as-transports-signal-slower-growth.html



Transportation and industrial shares are diverging in the U.S., a signal that equity investors are starting to agree with what the bond market already knows: this economic recovery will remain sluggish for months to come.

The Dow Jones Transportation Average fell 4.2 percent from its six-month high on Feb. 3 through today, while the Dow Jones Industrial Average (INDU) added 0.8 percent. The gauge of 20 shipping companies from FedEx Corp. to United Continental Holdings Inc. (UAL) peaked before the rest of the market when the technology bubble popped in 2000 and began slipping into a bear market three months before broader benchmark indexes in 2007.