Transportation Index Update - August 8, 2016
Last week we commented that "Now is a really good time to keep an eye on the Transportation Index along with all the Dow Theorists".
The current Dow Transport's chart is below (as of last Friday) and I don't see it up trending while many of the other indexes are making new highs.
Take a look at the chart below and ask yourself what is it trying to say?
Disclosure: None.
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Actually the bounce up in early 2016 was quite amazing. That said, besides hauling oil to nowhere, global trade and business is weak and seems to be getting weaker. What is amazing is that the US market has held up for so long with respects to the cyclical downturn. That is expected somewhat because a down cycle begins with commodities which the US is not heavily into and then moves to consumer goods.
If it progresses farther then it will hit the US.