ABOUT CONCEPT OF CONFIRMATION OF DOW THEORY,TODAY BECAUSE THE MAKEUP OF THE ECONOMY IS SO DEIFFERENT THAN IN DOW‘S AND HAMILTON‘S TIME, WE USE S&P 500 INDEX AND RUSSEL 2000 INDEX
ON THE SECOND CHART
NOTICE:- IN SEP 2018 BOTH THE S&P 500 AND RUT 2000 RECORDED NEW TIME HIGHS, THE PRIMARY TREND WAS ALREADY BULLISH,THIS CONFIRMATION IS JUST VALIDATED THE PRIMARY TREND AS BULLISH
BUT IN FEB 2020 TROUBLE BEGAN TO SURFACE WHEN THE RUT2000 FAILD TO CONFIRM THE NEW HIGH SET BY S&P 500, THIS SERVED AS A WARNING SIGN BUT DID NOT CHANGE THE TREND
ON MARCH 6 RUT 2000 RECORDED A NEW REACTION LOW, 3 DAYS LATER THE S&P 500 RECORDED A NEW REACTION LOW AND CONFIRMED A CHANGE IN THE PRIMARY TREND FROM BULLISH TO BEARISH
IN MARC THE RUT 2000 FORMED A HIGHER LOW WHILE THE S&P 500 RECORDED A NEW REACTION LOW, THIS WAS ANOTHER NON CONFIRMATION INDICATED A POSSIBLE CHANGE IN TREND
AFTER A HIGHER LOW THE RUT 2000 FOLLOED THROUGH WITH A HIGHER HIGH ON APRIL 8, TWO DAYS PRECEDED BY THE S&P 500 ON APRIL 6 WAS ALSO ADVANCING HIGHER AND THE PRIMARY TREND JUST CONFIRMED(SOME TECHNICAL ANALYSTS DISAGREE ON THIS POINT,WETHER THE PRIMARY BULL TREND CONFIRMED OR IT JUSTTHE BEGINING OF THE BULL TREND
EVENTUALLY WHEN THE TWO INDEXES SURPASSED THE OLD PEAK, I PREFER TO CALL THE PRIMARY UPTREND INDEED RESUMED
