Transports Eye First Bearish Message In 10 Years

Transports Eye First Bearish Message In 10 Years

Transports Eye First Bearish Message In 10 Years

Weekly Dow Jones Transportation Index

Transports have been flying high for nearly a decade. Is this trend about to end?

This chart looks at the index over the past 14 years. Since the summer of 2009, they have been creating a series of higher highs along line (2).

Over the past year, they have created a series of lower highs, just below line (1). These two lines are forming a narrowing pennant pattern that has to end.

The recent weakness has Transports testing 10-year rising support at (3) this week.

Until broken, this is a strong support line for this key sector.

If the support line breaks at (3), Transports will send a concerning message to the broad markets.

Keep a close eye on what this important sector does in the next few weeks.

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