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Dow theorists not impressed with market rally

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When it comes to the 5-year-old stock market rally, it seems like there's always someone trying to break up the party.

This time it's Dow theory adherents, who are troubled that there's been a breakdown this month that could spell trouble for the bull market, according to research the Wall Street Journal cited Tuesday.

The report quoted J.C. Parets, founder of Eagle Bay Capital, as well as Asbury Research, saying that because the Dow transports made a new high in March and the industrials did not follow suit, that could mean trouble. Dow theory holds that both indexes must move in tandem or it signals that a rally stands on shaky ground.

In this case, it means that the rise in transports has not been confirmed as part of a broader trend higher.

Read the full report here.

Wall Street