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Russ Mould, Investment Director at stockbroker AJ Bell discusses what the Dow Transportation Index is saying about the state of the economy.
The Dow Jones Transportation Average is closely watched to confirm the state of the U.S. economy, especially by proponents of Dow Theory. This theory maintains that as the industrials make and the transports take, the DJTA should confirm the trend of the Dow Jones Industrial Average (DJIA). A divergence indicates a potential reversal of the trend.

