Following the Tracks of the Dow Transports May Give Clues to the Market
Who cares about the transports?
That was the question I was asked in a radio interview on May 17. The producer of the program asked me what topic I would like to discuss, and when I said the Dow Jones transports, the young man was puzzled I chose a topic on which there was so very little interest. The radio producer, needless to say, is not the only observer who has so little regard for the transports.
However, at the time, the transports were telling a very interesting story on the market, as they were not confirming the records set in the other indexes, such as the Dow Jones industrials and the S&P 500.
First, a brief background on the transports, the importance of the confirmation tenet, and their validity for market forecasting. While I have covered this material before, it is amazing how useful the transportation analysis remains in market interpretation.
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