By Richard Russell
Below we see a chart of the Dow Jones Transports. The Transports have plunged below both their moving averages to a new six-month low. Surprisingly, the Dow and the S&P have recently recorded new record highs. Has this ever happened before - a new high in the Industrials against a six-month low in the Transportation average? I’ve combed through my charts of the averages and I can tell you that this has never happened before.
But what does it mean, and what is it telling us? Since it’s never happened before I don’t know what it means, but I can’t believe that it is bullish. I read dozens of newsletters and market advisories and almost all of them are scratching their heads as they attempt to call a top to this bull market.
The goods may be manufactured (Industrials) but they must be sold and shipped (Transports). The Transports are acting as if the ... Log in or subscribe to continue reading.