S&P 500 Receives Bullish Dow Theory Confirmation Signal

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2026.01.07 19:24
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The S&P 500 has gained over 1% in early 2026, reaching a new all-time high, supported by a bullish Dow Theory confirmation. This theory indicates that market trends can be predicted through the movements of the Dow Jones Industrial Average and the Dow Jones Transportation Average. Both indices achieved record highs, suggesting a positive outlook for the S&P 500, which has historically shown positive returns following such confirmations. However, caution is advised as the index has also experienced slight declines in the weeks following these signals.