WHEN THE DOW JONES Industrial Average set what was then its rally high in mid-October, the venerable blue-chip measure turned from a slight laggard to a clear leader relative to the broader market benchmark, the Standard & Poor's 500. Bigger suddenly was better.
More than a third of the Dow's 30 component stocks already were in strong trends while most of the rest were in decent technical shape. From a chart-reading point of view, the overall trend is up. If we dig deeper we see that breadth, or the participation by component stocks, confirms the Dow's trend.
In looking over the 30 Industrials, I put them in four buckets. The first was the "strong-trending" group. Among those, American Express (ticker: AXP) exhibits a very impressive technical structure (see Chart 1). (more)
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