The Dow Transports did a huge breakout today, sporting a well-formed inverted head and shoulders pattern.
There are two reasons this doesn't scare me too much. One, the similar breakout in early 2007 didn't amount to a hill of beans. And two, this pattern isn't at the bottom of a bear market – – it's just stuck in the middle of a market that has done not much of anything for several years. So it's not great news for the bears, but I don't think it's a death-knell either.
