Good Game... the DJ Transportation Index has broken down the up trend line. Sell signal on the ATIS system should be out soon. And MACD is crossing down into the bear territory. The BMT had already given way in early October.
According to the Dow Theory, the DJ Transports is a leading indicator and well, expect the rest of the market indices to follow.
The two year cycle low in djt came in right on time in march at ax 1.618 and 50% and .382 at march low we are now looking for the BULL MARKET TO END AND ENTER A 18 TO 22 MONTH BEAR MARKET IN DJT AS WE REACH THE UPSIDE TARGET 12175 TO 12250 WATCH FOR A MAJOR SHIFT WITHIN 10 TO 13 DAYS AS THE FINAL BLOWOFF IS ENDING 2021 THE DJT ON AVG WILL BE...
These are sort of my levels. Aren't you worried about crude level? I mean... Do you think this will ever recover its shape again? It's just common sense and because this world is moved by money and transportation issues mainly.
How do you imagine this future?
One of indicators to measure the US economy (and therefore SPX) still remains the transport index, and as shown on the chart, this indicator may have completed the upward movement (or almost). That said, in the coming weeks we will continue to monitor the support, and if it is broken, it is possible to develop an interesting bearish leg.
Looking at support and resistance lines plus various moving averages, I would say the DJ transports is like to range for the rest of this year or until September.
After this time, this is when the market in general will make a decision about where the market is headed. My bias is for the downside.
At the current moment i'd say its a good sell to support.
The Dow Jones Transports index is considered a good indicator of what the next move will be affecting the wider market.
The reason for this is because transports are a good indication of economic health. Lower patronage and goods moving means lower economic activity.
A few notes about the chart.
The orange line is the DJ30.
1. Looking at the first green flag in...