ABSTRACT
Charles Dow indicated that his conclusions regarding the stock market were based on more than 15 years of observation of the market and on his charting of the stock price movements. Dow considered price tracking important to an investor’s understanding of individual stocks and the stock market as a whole. Any stock market indicator can be overridden by other events. A sudden, sharp change in interest rates can quickly and easily override market indicators. At times even the suggestion of higher interest rates will quash a Dow Industrials rally and send it plunging 100 points or more. Charles Dow might have gone farther with the analysis, concluding that the bear market experienced from January through March appeared to be returning in late November, but then turned again, becoming bullish in December. He would have looked to achieving new highs in 1995, barring things unforeseeable.
