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.

For more of Mike Paulenoff, sign up for a Free 15-Day Trial to his ETF Trading Diary.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!