Going Their Own Way

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.

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