Transport Litmus Test

The Dow Transportation Index broke above its descending trendline back on October 24th. Since then, it has rallied and then started to retrace. This is an important test for the market. If support holds at 10739 and $TRAN resumes its push, that will add fuel to the bullish fire. If it breaks this horizontal, as well as its trendline, the breakout will clearly have failed.

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