Dow Transportations: Intraday View

Dow Transportations are trading nicely to the upside, with price trading in the middle of a big red third leg, specifically in blue wave (iv) of three. As we can see the index recently completed an extend wave in the previous wave (iii) at the 9491 level from where price started to decline. This decline we now see as part of a minimum three wave correction that could unfold in the current wave (iv). The ideal support for this wave (iv) could be around the 38.2- 61.8 Fibonacci ratio, from where more upside may follow.