There are at least two reasons to take the Dow transports’ weakness seriously. The first is that many claim that the transportation sector often acts as a leading indicator of the overall economy.
There are of course a myriad of things that Wall Street analysts will, at different times, allege to be leading indicators. And most of them fail to withstand statistical scrutiny.
But there appears to be at least some objective support for the notion that weakness in the transportation sector can presage weakness in the overall economy.
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