Dow Transports Signal Market Warning
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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