This economically sensitive Dow Industrials closed at 15,766.74, below the prior closing low of 15,871.35 set on Aug. 24, considered Black Monday in China.
Dow Transports already closed below its Aug. 24 close of 7,595.08 back on Dec. 11 with a close of 7,524.64. This set up a potential "Dow Theory Sell Signal" when the Dow Industrials followed.
When Dow Industrials closed at a new 52-week low on Wednesday, the "Dow Theory Sell Signal" was confirmed.
There were two additional new warnings from Asian trading on Thursday. The Nikkei 225 declined 2.4% to a new 52-week low of 16,017.26 and in bear market territory 23.6% below its June 24 high of 20,952.71. In India, the NIFTY 50 slipped 0.4% to 7,276.80, just enough for the index to fall into bear market territory -- 20.2% below its March 2015 high of 9,119.20.
Here's today's scorecard for nine major equity averages.
Here's the weekly chart for the Dow Jones Industrial Average.
Courtesy of MetaStock Xenith
The Dow 30 closed at 15,766.74 on Wednesday, down 9.5% year to date, and in correction territory, 14.1% below its all-time high of 18,351.36 set on May 19.
The weekly chart is negative, with the Dow 30 below its key weekly moving average of 16,755. This week, the average has been trading back and forth around its 200-week simple moving average of 15,770. The weekly momentum reading is projected to decline to 34.66 this week down from 46.75 on Jan. 15.