The transports have seen wild swings to either direction for as long as we can remember over the past few quarters.
However, look at the daily chart below of the Dow Jones Transportation Average. I drew that purple horizontal line two weeks ago on my video market recap. I said that if this time was going to be different, then a higher low was crucial and the 5,000 should not be lost.
The bulls stepped up and showed some heart, and now the trannies are breaking out from a cup and handle since 10/18. It seems and feels like this is just another in a long line of fakeouts. Maybe so, but I think that would be too easy of a conclusion to draw now.
A close at or near the highs today would add credence to the bull case for a major change in character.
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