The transports are an important group as they can confirm market strength or weakness (Dow Theory) and often be a leading indicator.
Today the transports are curiously strong. FDX is up 3.6% today.
Here's the daily DJ-20 Transports average-outperforming the industrials.
Again though, that 10-min negative divergence is there too. I like the strength as an indication of th bounce having some legs, but as I've been harping, I really think a pullback would do the market some good.
I don't suppose we'll see too much movement before Bernanke speak at 2:15. I'll be watching for any signs that the embargoed speech may have been leaked.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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