The Dow Jones Transportation Index Exhibits a Very Ugly Intermediate-Term Set-Up

CNBC rightly identified the DJ Transports as the worst of the indices during a final-hour segment on the markets.

If ever the correspondent needed to display a chart, it was during her report, because she would have been compelled to show today's significant breach of the Transport's October 2011 support line (at 7340), which triggered intense selling pressure thereafter.

That said, looked at from another perspective, we can make the case that the DJTA also has broken down from a big Head & Shoulders Top Formation.

If so, then the optimal, downside, target zone is projected into the vicinity of 6000, or another 15% to the downside.

Such a prospect is not good news for the economy or trade or the consumer-- or the Fed's current policy prescriptions.

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