Observing the Trannies with the Lights On

It is always a constructive exercise to look at an issue in multiple timeframes. With regard to the Dow Jones Transportation Average, the past few months have been a quagmire, complete with head fakes and false breakdowns. However, looking at the weekly chart is a good reminder that we are still in a clear bull run, and that the buyers have done an excellent job of defending the 20 period weekly moving average.

Below, compare the daily and weekly charts of the trannies, paying attention to my annotated weekly especially. In essence, the broader timeframe often amounts to looking at the issue “with the lights on,” where you usually get a moment of clarity about the trannies you are checking out.

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