TRAN Transportation Index Daily Chart

The trannies never printed new all-time highs this year to confirm the new all-time highs in the Dow Industrials so the stock rally has not received a Dow Theory confirmation blessing as yet. The blue channel shows a steady downward drift to the transportation stocks and that is with lower oil prices. The push lower over the last month does occur as oil prices recover. Price lost the 200-day MA, a bearish development, and now at lows comparing back to October about six months ago. Note how price back kissed the 200-day MA yesterday.

The RSI has not reached oversold conditions. The stochastics are oversold and open to a bounce; ditto the falling green wedge. So price may recover for a better back test of the 200-day MA at 8668. The pink boxes show the strong trend in the ADX. The upward trend was strong late last year but in December the strong trend disappeared and you can see the multi-month weakness that occurs to the present. The ADX is climbing again indicating a strong trend ahead and this trend is down for price.

The TRAN weekly chart indicators are weak and bleak wanting lower lows in price after any relief bounces occur. Lower transportation stocks do not portend good things for the economy. Watch price action in relation to the 200-day MA that provides a bull-bear line in the sand. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.