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The Dow Jones Transportation index since 2009, has remained inside of rising channel (A) above. No doubt, the trend is up!
The 6-year rising channel trend is being put to a critical test of support, right now at (1) above.
Transports peaked over a year ago and have declined nearly 17%, since November of 2014. The decline now has Transports testing rising channel support and another key support line that dates all the way back to 1999. At the same time, Transports are testing a Fibonacci 161% extension level, at the same time.
A reminder, support is support until broken and the index is testing “Triple Support” at (1) above.
The Power of the Pattern feels that its critical for this important sector to hold right here and now. If this index would fail to hold at triple support, it could slip over the edge and fall a large percentage, since little support is directly below current prices.
It has paid to buy transports at rising support for the past few years, will it be different this time? This is not a place where this index would want to slip over the edge! Stay tuned friends, this humbly appears to be a important price point for a key sector of our economy.