Transports are not confirming the bullish action on the S&P 500. With the S&P 500 making all-time highs, you would expect Transports to be doing the same. Instead, Transports are clearly under-performing the S&P 500.
Transports are slightly under-performing the market prediction. Still, price action is close enough to not require an update to the predicted path of Transports.
The under-performance by Transports can really be seen by looking at the Dow Transports Volume Advance-Decline Percent chart.
The advancing volume to decline volume has plunged over the last two days and the PPO histogram bars are dropping.
Ideally, in a bull market with the S&P 500 hitting new highs, you want to see Transports confirming the S&P 500 by hitting new highs as well. The fact that Transports are not confirming the bullish move on the S&P 500 is a big yellow warning sign IMO. It keeps the thesis alive that we could have a market pullback for the week ending September 29, 2017.
Latest posts by Lance Jepsen
- Lam Research Stock Higher On Needham & Company Price Hike - October 19, 2017
- Taiwan Semiconductor Beats On Earnings and Revenue - October 19, 2017
- KeyCorp Stock Bullish Flag Flush On Analyst Buy Rating - October 19, 2017