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The DJ Transportation Index is doing very well, as it is at/near all time highs. With two thirds of the economy fueled by the consumer, how these stocks perform can be viewed as a barometer of how the economy is doing.  

Rail Traffic looks to be in good shape at this time, see below…

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The Strategy I use is called TB&M, which stand for “Tops, Bottoms & No Middles.” I attempt to find key highs and lows, where reversals or exhaustion of trends might take place. 

Without a doubt, the trend in the Transports is up right now, no matter which way you look at it. The confluence of trend lines and the Fibonacci extension has the “potential” to disrupt the trend in the Transportation index.

With the trend up, odds favor a breakout! Should these resistance points at (1) change the trend, we might pay attention to the potential message coming from Transports about  the direction of the economy.