Ever since the session started the transportation index has been leading to the downside. Despite the robust rally back to break even we saw this morning across the broad indices, the group still looks weak.
As we can see on the below chart of the NASDAQ Transportation Index, yesterday the market printed a strong excess high and reversed. Today it went gap down and has been under pressure ever since. This price zone is critical for this contextual piece. If this zone gives way it is likely to trigger a retest of the late-August lows, see below:
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