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The Dow Jones Transportation Index has had a rough year, as it is down over 17%, while the S&P 500 is nearly flat for the year.
This decline in the Transports, has it testing dual support at (1) above. As mentioned in the chart, support is support until broken.
A “slipping hazard alert” is in play here. If the Transports would fail to hold at dual support, the declines this index has experienced this year, could get much larger.
Monthly momentum (top section of chart above) earlier this year, was hitting levels last seen in the late 1990’s. Even though Transports are down 17% this year, long-term momentum is not at levels where solid long-term bottoms, have come into play.
As we all embark on a New Year ahead, I humbly feel what the broad market does in 2016, could well be impacted by what Transports do at (1) above.
Thank You for your viewership of my blog this past year.
Wishing each of you a Healthy, Happy and Prosperous 2o16!!!