The theory was originally derived from the editorials of Charles H. Dow (1851-1902), first editor of the Wall Street Journal and co-founder of Dow Jones and Company.The Dow Theory asserts that bull markets are characterised by a primary trend that consists of three major upward thrusts interrupted by two pull-backs i.e. periods of weakness. It was later redefined, after his death, to state that a new high in the DJ Industrials had to be confirmed by a new high in the DJ Transports, and visa versa. Charles Dow, should therefore be credited with discovering the basic tenets of the EW in the late 1800's: a five wave sequence, with 3 waves up and 2 interceding waves down. In modern times, the U.S. has shifted from being an industrial nation to a service nation, and as a result, the redefined theory is even considered pretty much passe. I tend to disagree, somewhat. An expanding economy, whether a service one or not, still