Transports Attempting Breakout, Which Could Help The Broad Markets

CLICK ON CHART TO ENLARGE

The Dow Jones Transportation index has remained inside of rising channel (A) over the past 20-years.

The decline of late took it down to test this channel as support back in August. At the same time it was testing 20-year support, it was testing 5-year rising channel support at the same time.

So far, support has held.

Now the Transports are facing a falling resistance line that has been in play for the past 6-months

A breakout above resistance would be a positive price development and would also be a good sign for the broad markets.

Keep a close eye on Transports going forward, this looks to be an important test for this index and the broad markets.