The chart says it all. Continuously watching DJT and RTY for economic indicators pointing towards overall slowdown.
Both -Nas and SP500- made new ATH's, while the latter RTY and DJT (DowJonesTranspo) lagged and were unable to re-capture ATH's.
-------RTY and DJT appear to be spilling over. ------
Watch the levels, trade accordingly and most importantly.
---Composed this for a friend---
A comparison of a large trucking company and the DOW Jones Transportation Index. Using the DOW index to look for early signs that can affect the smaller logistics components.
I am bearish (negative) on Industrials. Why? At the most Macro -- President Trump does not want war, but, Congress is too divided for comprehensive...
A market in a broadening formation is said to be lacking intelligent sponsorship and out of control - a situation usually in which the public is excitedly committed and which is being whipped around by wild rumors. E&M
Classic Dow theory suggest a downtrend ahead and the outlook may look gloomy as the Transportation has not been making new highs and instead it makes new low. Beside that, there is a high probability that the transportation will break the diamond top pattern.
Dow Jones Transportation have just finished their wave 5 cycles up. Which means we are in store for a larger correction down. There we are looking at retracements to the 0.382 fib at 7800 or a 0.5 fib retracement at 6700.
If transportation were to drop, the SPX and S&P is going to drop too. Transportations has always been a early warning regardless to do that.
The Dow Jones Transportation Average (DJT) looks like it has completed a multi- month Elliott Wave Horizontal Triangle, if so it could now be in the early phase of a post triangle thrust up. A thrust is usually measured by the widest length of the triangle which in this case is wave (A) = 2986.80 points. This is added to the termination point of the triangle -...
DJT move since 24 December looks like an impulsive 5-wave pattern (With RSI divergence). Retracing to 10k is possible with coming earnings reports and profit taking. 10k - 9.5k will offer good risk/reward ratio. It would be wise to keep an eye on this.