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Let's notice that while the Dow and DIA have climbed to new highs, the DJTA and the IYT are a long way from their 2006 peaks, and today are putting in key downside reversal spikes! All of the top 6 holdings of the IYT either are in the process of putting in key downside reversals or have established new recovery highs this morning followed by a decline to or below unchanged for today's session -- with oil down on the session and near its July-Oct lows. Huh? Yep...both the pattern work off the May highs and the underlying momentum oscillators indicate the today's action is a BIG WARNING that the Transport sector in particular, and perhaps the economy in general, are not as chipper as many stock bulls would have us believe.
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Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!