Tell me why
Everything turned around
--Fleetwood Mac
Divergence between the industrials and trannies continues to be noteworthy. While the DJI is marking near multi-yr highs, the TRAN has moved to the bottom of its multi-month channel.
Over the past day, Fed Ex (FDX) and Norfolk Southern (NSC) were high profile names in the sector that reported/guided down.
Dow theory suggests that the recent upward thrust cannot be construed as bullish until confirmed by the trannies. With the transports now back down to multi-month support, a decisive break below would add to the drama.
position in SPX
Thursday, September 20, 2012
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