The leader of the market or the DJTA (Dow Jones Transportation Average) is quite interesting here. I always watch this for clues about where the market could head next, as it can give us many good signs.
If you have a look at the DJTA chart below, we have basically be trading within a range for the last few months ( 87 - 93 ) and things have just been bouncing in a rectangle range, while the market was skidding higher. As you can see on the chart I have circled the DJTA sold off back down to its short term support levels, and as it sold off, and the sell off volume on THURS & FRI was quite significant.
The price also poked its head just below the significant levels of support too, by the close on FRIDAY. So it means the DJTA is warning us a bit here.
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