The Dow Jones Transportation Average slumped 94 points, or 0.91%, in midday trading, with 16 of 20 components losing ground, despite the Dow Jones Industrial Average gaining 49 points, or 0.2%, with 18 of 30 components rising. This could mark the third time this month that the Dow transports fell more than 0.9% despite a gain in the Dow industrials, after not having done that since Dec. 13, 2018. According to the century-old Dow Theory of market analysis, the sister indexes are believed to have a symbiotic relationship, as the transports components companies are seen as "taking" what the industrials components makes. One of the six basic tenets of the Dow Theory states that both averages must exceed a previous peak to confirm the inception or continuation of a bull market. While the Dow industrials is 0.4% above its April 23 peak of 26,656.39 and just 0.2% below its Oct. 3, 2018 record close of 26,828.39, the Dow transports is 7.6% below its April peak and 7.9% below its Sept. 14 record close.
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