Transports, rainbow, monthly, 6yr
Trans, weekly
Summary
If the tranny can close this Friday at or below the current level of 5061, then we will indeed get a VERY important sell signal..a red candle!
This would be the first monthly red close since last September.
If the 'old leader' is still indeed the leader, then we should expect the rest of the market to follow in September.
As for the state of the other indexes, they only have blue candles on their respective rainbow charts, and the sp' is actually outright bullish-green. So, there it is certainly a mixed situation.
So, lets see if we can close this Friday - and the month, with a red candle. A close this Friday under the big 5000 level would be particularly welcome. It would break the triangle - as seen on the weekly chart, and opens up a move to break the June low of 4800.
The new red candle offers the very first official sign of weakness, the Autumnal downside target for the transports is at least 4500.
Goodnight from London