S&P 500 Railroad index is within a couple of percent of “All-Time” highs, attempting to break above its 2011 highs along line (1) above.  Keep a close eye on this leading index to see if it can breakout to new highs or if it will get de-railed by resistance and a rising wedge.  The broad market needs Transports to go along with it. 

Important that this leader is dealing with 2011 resistance and the 500 index is dealing with its 800 Pound resistance line, at the same time! (see post here)   Would be a positive message if both would breakout at the same time!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past