US stocks hit record high to signal Dow theory buy

Markets were mostly higher on Thursday.

In the US, both the S&P 500 and the Dow Jones Industrial Average hit record highs, gaining 0.8 percent and 1.0 percent respectively.

Elsewhere, the STOXX Europe 600 rose 0.7 percent but Asian markets were flat with both the Nikkei 225 and Shanghai Composite ending little-changed.

“Fundamentally and technically, the market is really strong right now,” said Paul Brigandi, managing director and head of trading for Direxion.

However, Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said that trade friction remains “an ever-growing threat to the world economy” and that “caution is warranted”.

Still, the new highs recorded by the US stock market on Thursday confirmed that the bull market remains intact.

Art Cashin, UBS director of floor operations at the New York Stock Exchange, said that the confirmation “should be a Dow theory buy signal” and “therefore you have six to nine months of a higher stock market”.