The DJ transportation index and the DJ Industrial index are suppose to move in the same direction ( same direction does not equal same rate of return), as per the Dow theory. However , for the past 10 days or so, we've seen the DJ Transports, represented by IYT
, break it's trend line
and diverge from the DOW ( Orange line) .
So, is the transport index trying to warn us about a upcoming correction in the market ?
SOURCE : SEEKING ALPHA ( http://seekingalpha.com/article/391901-transportation-etf-fires-a-dow-theory-warning-shot