Courtesy of Read the Ticker.
The Dow Jones Transports is on massive resistance.
Previous Post: Market Call, Upper channel correct imminent
The Dow Jones Transports (DJT) is on massive resistance. The DJT is a proxy leader for the DJI.
In the past very large IPOs have been near the end of a market rally, and it just so happens that Alibaba.com IPO is days away. The rising US dollar is not going to help the SP500 exports either, after all 60% of all revenue for the SP500 comes from outside the USA.
Is the market about to roll over, tomorrow. No idea, but you should be on your guard for signs of weakness in leading stocks and sectors. We saw earlier on this year a big sell down of Biotechs (IBB), this could be the first act in the process of Mr Market distributing stock float to the public (ie long only mutual funds). The second act could be the lack luster performance of the Russell 2000 vs SP500 in recent weeks, a third act could be the rising US 10 yr interest rate (higher than Spain and Italy 10yr – go figure).
Oops and it seasonally rough for the SP500 between Sept and Nov. Not to mention the FED turining off the QE funding.
The chart below is a refreshed chart showing how close price is to the upper channel line.
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The longer chart.
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NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote…
..“It cost me millions to learn that another dangerous enemy to a trader is his susceptibility to the urgings of a magnetic personality when plausibly expressed by a brilliant mind.”…
Jesse Livermore
..”If past history was all there was to the game, the richest people would be librarians”..
Warren Buffett
