We’ve been expecting this move in the NASDAQ transportation index for two weeks, an excerpt from last Sunday’s Exodus strategy session:
Now we wait:
Am I showing you this so you can see how awesome my research is and to tell you to shell out the pittance we charge for Exodus? No. I am simply demonstrating, in real-time, that there is a method to what many characterize as an erratic and volatile market. The auction is the auction is the auction. QED.
If you enjoy the content at iBankCoin, please follow us on Twitter
Nice post.
Beside the Technical setup that you called out, I’ll remind everyone Transportation is an important indicator: if companies aren’t shipping, that means their customers’ aren’t buying.
This forms the basis of one of the oldest Bull/Bear market theories:
https://www.investopedia.com/terms/d/dowtheory.asp
Thanks for the heads-up, I’ll keep an eye on this. Also looks like the S&P transports (XTN) is below their suuprt (~60) as well the Dow Transports (^DJT on yahoo) below 10000
I think of transports like the veins and arteries of the economic ‘body’