According to Dow Theory, a major market
A) advance has few price fluctuations indicate a new upward trend.
B) advance does not go straight up, because some investors will take profits.
C) decline is easier to predict than an advance.
D) decline typically has a higher level of volume than a major market advance.
E) advance goes straight up because most investors ride momentum.

Question

Quizplus · Accepted Answer

According to Dow Theory, a major market advance does not go straight up because some investors will take profits. Dow Theory stresses that market movements often have multiple phases and corrections. Therefore, some investors will take profits during the upward trend, resulting in price fluctuations.

According to Dow Theory, a Major Market