Below we see the D-J Industrial Average sinking below both its June and July lows and falling to an August low.
Now compare the Transports on their decline to the Industrials. The Transports on their decline held above the June low -- whereas the Industrials broke below both the June and July lows. In other words, the Transports halted at 7983 and in so doing, they refused to confirm the greater decline of the Industrials. This flagrant non-confirmation led to the post-June Industrial rally back to just below the previous record high.
Conclusion -- As long as the Transports remain above 7983, The situation will remain bullish.
Two men are in a competition. Each has a pile of blocks and the idea is to build a tower, one block on top of the next, to see who can place the last block on the rising tower. The tower of blocks is now a ... Log in or subscribe to continue reading.