Is The Dow Theory Sell Signal Irrelevant? We still lean to the argument that there is a better alternative than the Dow Theory and in fact, we think the Dow Theory as it stands is entirely irrelevant. You can read the article we listed above if you want to find out why we feel this way. Regarding the second question, we briefly addressed above, and as stated while the Crowd is not as nervous as it was back in October and early November; the masses are not euphoric. Current sentiment data seems to confirm this outlook. However, the main reason the markets will not crash is that the trend is still up and until the trend changes direction; all sharp pullbacks should be seen through a bullish lens.It looks like the Utilities are coiling up to break out again in 2018. This suggests that the Dow industrials will follow in their footsteps. If you look at the utilities, you will see that in general, it tends to lead the way up and down and is a better barometer of what to expect from the markets than the Dow transports. The utilities are coming out of a correction, so this means that the Dow is likely to experience a correction sometime in the 1st part of next year before rallying higher. The correction should fall in the 5-10% ranges. We use the utilities as a secondary indicator. Our primary indicator is the trend, and as the trend is up, we would view substantial pullbacks as a buying opportunity.