A look at the Dow Jones Industrial Average and the Dow Jones Transportation Average confirms that pessimistic view. Beginning in mid-2007, the DJTA started to trend downwards, while the DJIA remained caught in a relatively narrow trading range over the course of 2007 until early 2008. This pattern is currently being repeated, as the DJTA finds itself in a downward trend which started in late 2014, while the DJIA has been flat over the same time period.
Even more signficant, in my view, is the divergence between DJIA's price movement and the , which is apparent since early 2013 . It is worthwhile to point out that the longer such a divergence lasts, the stronger is its explanatory power - and eventually the correction it calls for. With the current divergence between price and having started more than two years ago, this is substantially longer than the roughly half year discrepancy we experienced in 2007, before prices corrected about 50%.