TRAN Transportation Daily Chart Dow Theory Non Confirmation H&S

Trannies showing the July high (green circle) but the Dow Industrials never came up to make a new high, thus, Dow Theory non confirmation. Price has fallen like a stone, the 4950-5050 area is important support. Note the negative divergence blue lines that created the spank down a month ago. Histogram, however, the blue circle, was very strong, so some upward movement in price would be desired to burn off some of that strength. The red bars show a left shoulder and head for an H&S, perhaps a move back up will create the right shoulder in the coming weeks. A failure of the 5000-ish support area will lead to the 4300-4500 target.

Chart favors some sideways movement going forward, the 4950-5050 support should hold, for now, then in the weeks ahead weakness should resume and the door will open to lower numbers once again. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.