Dow Theory
Dow theory is often used as an indicator of when a bear market may be about to start.
Dow theory is named after the 19th century editor of the Wall Street Journal, Charles Dow. It is often used as an indicator of when a bear market may be about to start.
The idea is that when a downward trend in the Dow Jones Industrial average is confirmed by a downward trend in the Dow Jones Transportation average, firms are no longer shipping goods between each other, which indicates slowing activity and means that a new bear market has begun.
See Tim Bennett's video tutorial: What is an index?
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Why UK investors are backing British stocks in 2026The UK stock market may be lacking fashionable technology shares but investors are keen to buy British next year
-
UK inflation live: did inflation fall in November?The ONS releases inflation data for November tomorrow (17 December). Has inflation continued its downward trend?
