Are Transportation stocks about to send a quality bullish message to other Dow indices this month? Sure could be!
This 3-pack looks at the Dow Jones Industrials, Transports, and Utilities indices on a monthly basis.
One week from the end of a month, the DJ Transports are attempting an important bullish breakout at (1). Unless a sharp reversal takes place in the next week, Transports could close out the month at new monthly closing highs!
The Dow is attempting to close at all-time highs this month, while the Dow Utilities Index remains a few percent below 2020 highs.
Transports for the past couple of years has underperformed the broad market (S&P), reflected relative weakness. Over the past few months, its been the opposites, Transports stronger than the S&P 500.
If Transports succeed in closing at new monthly highs a week from now, they send a bullish message to the other Dow indices!
The bullish trend for stocks would receive a discouraging price message if Transports would close the month below 2018 highs!
