The Dow Transports ($TRAN) doesn’t get much attention, but I’d like to change that briefly. Take a look at the chart below, because it’s quite interesting.
What I see is as follows:
- A massive basing pattern which came close to completion but sputtered out (blue tint);
- Range-bound behavior for months (magenta tint);
- A failure below this range;
- A subsequent bounce to the underside of the range.
I think what’s next is a resumption of the weakness.
