The top chart is the DOW JONES index, and bottom chart is the leader of the indicies the DOW JONES transportation average. As you can see, the leader has now crossed the 50 EMA moving average line. That is not a good thing, and sellers have come back into this market the last few weeks, and this is very clear.
The alarm bells are ringing, however if you look at the top chart we have had a very massive bull run for the last several months, so the negative action over the last few days does not surprise us.
Normally each year on the market, no matter if you are in a bull market or bear market you will normally always get one large corrective sell off. We could be seeing that now, and time will tell.
|dow jones transports chart|
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