As I noted earlier, plenty of individual stocks continue to act very well as the broad market averages have gone sideways in recent weeks. However, keep an eye on the transportation sector to see if it holds it major support trendlne dating back several quarters, as you can see on th first chart below of the Dow Jones Transportation Average. Of course, I would not rule out a shakeout below the trendline and reversal back higher. The second chart is the daily timeframe of major rail CP. Thus far, the pullback appears to be entirely constructive within the context of an overall uptrend, and I am resisting the urge to call for a major breakdown in the sector despite the weakness.
One Response to Trannies Livin’ on a Prayer
Hard to get psyched with transport and semi indexes continuing sideways at best, or down.