Transportation-related stocks tend to be economically sensitive. So it was no surprise to see them fall sharply last March as the COVID-19 coronavirus gripped our news and nation.
But since bottoming last year, the Dow Jones Transportation Average and Baltic Dry Shipping Index have moved sharply higher. And this may be sending a bullish message about these stocks (and the global economy).
As you can see in today’s chart 2-pack, both indices are breaking out above their respective long-term “monthly” trend-lines at each point (1).
In the case of the transports, it’s a breakout above overhead rising resistance (indicating a very strong move as long as it holds). In the case of the shipping index, it is breaking out above a confluence of lateral resistance and its falling overhead trend-line (this will signal a change in trend as long as it holds).
In any event, the price action continues to reflect strength in the global economy! Bulls want these breakouts hold. Stay tuned!
This article was first written for See It Markets.com. To see the original article CLICK HERE.
