Here's an updated outlook for the U.S. stock market based on the recent performance of both the DJ Industrial and DJ Transportation (Dow Theory)…[which,] combined with our intermarket analysis, is pointing towards a risk-on period for the U.S. stock market. The original article has been edited here for length (…) and clarity ([ ])The updated chart below clearly shows the breakout happening currently in the Dow Jones Industrials. - The falling wedge resolution is clearly to the upside, and that's very bullish for U.S. stock markets, especially considering that it's paired with a solid support forming for DJ Transportation and the strong performance U.S. small caps are demonstrating.
- Both DJ Transportation and DJ Industrials are also showing more upside potential and if both continue moving in tandem, it is a strong buy signal for U.S. equities.
Q: The question that might be asked at this point is how can we be bullish on U.S. equities as well as precious metals and gold and silver miners at the same time? Shouldn't they have a negative correlation? A: The answer, as usual is in the charts: - gold and silver's multi-year chart patterns indicates potential for a massive breakout. Patterns that take years to develop are usually very telling. With inflation picking up, 2018 might be a year where we actually see both gold and U.S. equities trend up.
Again we will have to monitor charts closely, as there is always possibility that the resolution of the triangle patterns in gold and silver is to the downside. One thing is clear for now: Dow theory combined with our intermarket analysis is pointing towards a risk on period for the US stock market. 
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