The Message from Transports and Purses
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The Dow Jones Trucking Index reflected weakness back in 2007, diverging from the S&P 500, and in time both fell in price.
Since early last year, the Trucking index has creating a series of lower highs, diverging from the pattern of the S&P 500 index. Not only is a divergence taking place, but also the Trucking index is picking up downside momentum.
Check out the chart below, related to consumption, which is sending a caution signal as well! Coach's breakdown took place in 2007, long before the S&P 500 was heading south.
Is Coach's breakdown sending a message about the future of the broad market, again? Stay tuned!
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