Transports: Non-Confirmation for Stocks?The S&P 500 SP:SPX hit new all-time highs last week. But one noteworthy part of the market didn’t participate: transportation stocks.
Today’s weekly chart of the Dow Jones Transportation Average shows how prices inched to a new high but failed to hold. They instead reversed and closed at the lowest level in over a month. The resulting bearish outside candle is a potential reversal pattern.
Second, DJT peaked last November below its previous all-time high from 2021. That’s a potential sign of poor relative strength.
Third is the series of lower weekly highs since late 2024. Why aren’t buyers driving the group to new records?
Fourth, rate of change in the lower study reveals the Transports lost 7.7 percent of their value last week. Aside from the extreme volatility around “Liberation Day,” it was the biggest weekly drop since September 2022.
Finally, there could be implications for the broader market because DJT is often seen as a bellwether for business and the economy in general. (This is often known as “Dow Theory.”) Given apparent weakening of the labor market last week, some investors may see a warning sign in DJT’s price action.
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