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Djtransports

[DJ-T] UPTREND COMPLETED?Hello Traders! One of indicators to measure the US economy (and therefore SPX) still remains the transport index, and as shown on the chart, this indicator may have completed the upward movement (or almost). That said, in the coming weeks we will continue to monitor the support, and if it is broken, it is possible to develop an interesting bearish leg. If you think this analysis can be useful and you want to receive new updates about this idea, click on LIKE button! Thank you for support and trade with care!
DJ:DJT
by TheAnonymousBanker
3
A look at the DJ Transports index to predict market directionThe Dow Jones Transports index is considered a good indicator of what the next move will be affecting the wider market. The reason for this is because transports are a good indication of economic health. Lower patronage and goods moving means lower economic activity. A few notes about the chart. The orange line is the DJ30. 1. Looking at the first green flag in December we can see the start of the diverging indices that were previously highly correlated. The Transports drops off heavily in early December with the DJ30 following soon after, a month later. 2. The low of the Transports comes first and then rises. The DJ30 followed a month later with a low but that low is not matched by the DJ Transports. Again a leading indicator. 3. The DJ Transports spiked downwards on Friday but then regained its level. Should the indicator drop below the support trend again and close, the price could fall much further. If this is not matched by the DJ30, then divergence will continue to increase. 4. MACD indicator show crossover which is bearish. A fall below the RSI support level would confirm bearish direction. 5. It is possible the transports high was hit on the 21st of March. I'm expecting the DJ30 high to be hit within the next 20 days. Possibly as early as next week.
DShort
by maccabean