Trannies Confirm

Arrows of neon and flashing marquees out on Main Street
Chicago, Detroit, New York and it's all on the same street
Your typical city involved in a typical daydream
Hang it up and see what tomorrow brings
--Grateful Dead

Yesterday's rally pushed the Dow Jones Transportation Index thru previous resistance at 9200ish to all time highs. The Trannies now join the Industrials in virgin territory. This constitutes a confirmation of the rally, a.k.a. a buy signal, from a 'Dow Theory' perspective.

While not fighting the trend, I am literally not buying it either. Perhaps things are all good with the world in a manner that justifies a big move higher from here. But I don't think so. Moreover, from where I sit, the faster they melt up and draw buyers in, the greater the likelihood of an epic collapse from the apex.

Would be more prone to look for ways to participate in that downward phase if/when.

position in SPX