You can’t say that the Dow Jones Transportation Average didn’t warn you.
As I pointed out in a late-April column entitled “What market must do to avoid a sell signal,” the Transports were then dangerously failing to confirm the strength of the Dow Jones Industrials Average, which at the time was close to a new bull-market high.
As I quoted Jack Schannep, editor of thedowtheory.com, the Dow Transports needed to “get in sync with the Industrials.”
We should be careful what we wish for.
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