Transports are often considered a leading indicator of how the economy is doing. Since the Septemeber 2018 highs, the Dow Jones Transports Index has declined more than the broad market. This decline looks to be forming a new falling channel highlighted at (1).
The rally over the past month has this important index testing triple resistance at (2). Recessionary fears would be reduced by a great deal if this important index breaks out at (2).
Transports would be suggesting that the economy is slowing if they fail to breakout at (2).
Many are suggesting that a recession is not far away. What Transports do at (2), should go a long way in clearing up the recession debate!