Transports holding up....just.

The transportation index is long considered the old 'leader', and is certainly an index I've come to realise is vital to follow. Over the last few years it has often been the leader (along with the Rus'2000 small cap) in many of the major down cycles.

Lets take a brief look!

Trans' daily

Daily cycle looks like its holding key support...barely. Today did not close massively bullish, but still, it was a positive close, and bulls will need to see at least some follow through Thursday/Fri.

Trans, daily..rainbow chart

From this chart, things looks a little more clearer, we have no turn at all yet, but we are pretty low on the cycle, its not a particularly bad place to enter new long positions..with a tight stop of course!


A reminder on the bigger picture...

Trans, monthly - the 'doomer count'

Trans, monthly - the bullish outlook

I think the Transports sums up where the main market is right now. Unlike the other indexes, the transport is in a particularly tight range. Whichever direction we do end up going in the next month or two, its going to be a major move.

Bulls have a clear 'abandon ship' level at just under the 10MA of 4975
Bears have a last ditch line to 'quit being doomish' at the recent April high of 5334

Whichever side you take in this crazy market, the old leader index is one to keep watching!