Transports

I meant to mention this last night, call it a gut feeling, but after looking at some charts, I think there's a basis for it. I was thinking we'd likely see more weakness in the transports in the next few days, the first break with the Dow was totally out of character for the two averages and another break wouldn't surprise me, but institutional money tries not to sell i to weakness, they want to sell in to strength and demand so I expected some kind of rebound, but I think even in this area we should keep an eye out for further weakness in transports. This isn't about a specific trade idea, it's more about market tone than anything.

 The Dow-20 (green) vs the Dow-30 (red),  in the yellow box there's a 1.4% differential between the Dow Industrial and transports over 2 days,  this is strange because they have been tracking each other nearly perfect (at least directionally) for the entire year which I find to be ridiculous, but no more ridiculous than the NO VOLATILITY, NO CORRECTION, Market levitation in which the simplest of technical traders would have noticed the Industrial/Transport confirmation of Dow Theory, although it's probably only about 25% as useful as compared o when it was first proposed. In other words, all the props for dumb money to believe in this move have been in place, the move itself has been for the most part, low volatility, headline driven and hasn't had a single corrective/healthy pullback all year.

 Here's what the DJ-20 looked like a little after open, there's a small head fake move before the DJ-20 broke with the Dow 30. Right now there's a "bullish" ascending triangle, it's not very big so I don't know how important it is, but since the open it has made a few moves worth watching specifically with regard to that triangle.

Since the open...

 The 4 hr. Dow-20 (Transports), the chart is self-explanatory.

The 30 min chart is as well.

And the 15 min chart, so there are quite a few important timeframes that loo like they will pressure the transports lower.