Ask Colin

Further to my earlier email about XAO being in a bear market, I offer the attached chart of the Industrial Index with the Transport Index which suggests to me that classic Dow Theory would put us squarely in a bear market (mid March 2001). I would appreciate your comments.

Again you are technically correct. I am comfortable with seeing the Transport index as being a downtrend. However, the All Industrials was in what I see as a rectangle or perhaps a big triangle. It is this week's (week ending 23.03.01) big move down that I see as really significant.