the dow 50% principle

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    Those of you who follow Dow theory will be aware of the 50% principle.

    Friday's stock market action might have significant. The Dow opened at 9493.58, rallied for an hour or so, then sold off steadily until the close.

    The 50% Principle or halfway point of the entire bear market decline comes in at 9504. So the Dow apparently tested the 50% level, and then sold off. It might be too soon to call that a definitive test, but that action may have been significant. Friday the Dow had every opportunity to close above 9504, but it reversed and sold off instead
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