Stock Indexes In Dow Theory Uptrends Are Piling Up

A number of stock market indexes produced bullish technical patterns by closing above their April highs Wednesday, joining the Russell 2000 Index which accomplished the feat on Tuesday. What makes the higher closing highs bullish is that the Dow Theory, which has remained relevant among market watchers for over a century, defines an uptrend as a pattern of higher peaks and higher lows. And the more broader-market indexes that have entered uptrends, the more confidence investors can have in buying into pullbacks. The Russell 2000 was down as much 0.5% at its intraday low Wednesday, before bouncing sharply to close up 0.7% at a six-month high. Other indexes that made higher highs Wednesday, to go with higher lows, include the Dow Jones U.S. Total Market Index , the Russell 3000 Index , the S&P Small Cap 600 Index and the S&P 400 Mid Cap Index . Meanwhile, the S&P 500 Index is about 0.1% away from a higher high, the Nasdaq Composite Index is about 0.2% away and the Dow Jones Industrial Average is 307 points away.

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