It’s clear that the Transportation Index is broken technically from the strong uptrend it was in. The recent breakout was a trick to sucker in those that were buying the breakout and it’s clear when you see the velocity of the recent downturn, accompanied by massive volume. Even the last selling in mid-late January was heavy when you look at the volume. The rally from Feb1-21 was on very low volume, with the top not even reaching the 60ema. Clearly a warning sign that I don’t take lightly.
Today was basically one of those churning days where the markets tried to trick the shorts into covering and the bulls into buying, as we work off the recent oversold condition. I don’t see anything in the charts that suggests we’re heading higher.
