Below looks at the Dow Jones Transports ETF (IYT) that remains in a long-term bull market.
(Click on image to enlarge)
IYT broke to new all-time highs seven weeks ago at (1). It stayed at new highs for one week, before selling pressure started taking place. The weakness has it breaking below 18-month rising support last week, which does send a caution signal to bulls.
The next critical support level for IYT comes into play at the $159 zone. With an “unfilled weekly gap” still in place at the $142 level, what it does at (2), could become very important for the uptrend.
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