By Jon S. Strebler
Stock prices have mostly continued to rally in recent weeks after their late-summer meltdown, especially in the US. The Dow Jones Industrial Average is again close to 18,000, within striking distance of its all-time high, as we see below.
Of concern to Dow Theorists and other market students as well, the Transportation Average isn’t acting as strongly. Nor has it for the last year or so. The Transports topped out a year ago and are now about 11% below their highs, compared to the Industrials, now only 3% below their comparable highs.
What makes this divergence even stranger is that transportation companies benefit hugely from lower fuel prices, and fuel prices are the lowest they’ve been in years. The average price of unleaded gasoline is currently $2.15/gal. nationwide, and expected to drop below $2 before long. While trucks, trains, planes, and ships don’t use much unleaded gasoline, ... Log in or subscribe to continue reading.