Algokid

Warning from the DJ Transport Index ? (IYT)

AMEX:IYT   iShares Trust iShares U.S. Transportation ETF
1
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-t...)


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.