Wednesday, 9 December 2015

Transports continue to unravel

Whilst the broader market closed moderately lower, there was very significant weakness in the Transports, with a net daily decline of -2.8% @ 7663, just 3% above the Aug' low of 7452. If there is sustained trading in the 7300s, it will be a major warning of trouble for the broader market.

Trans, weekly

Trans, monthly2


The monthly chart sure is ugly. The Trans' has not seen a bullish green candle since Nov' 2014. The current red candle is absolutely bearish for the near/mid term.

The only issue is whether 7300s.. in which case.. next target would be 7K.

They (myself included) don't call the Transports the 'old leader' for nothing, and its something to keep an eye on into year end.

Closing update from Riley

Looking ahead

Wed' will see wholesale trade, and the latest EIA oil report.

Interest rate chatter from the Schiff

Indeed, we're now just a week away from the Fed raising rates for the first time in around a decade. It will be a hugely important day for the US and all world capital markets. I am most most certainly looking forward to it,  perhaps even more than for Star Wars VII.

Goodnight from London