The S&P 500 and a Key Transportation Index
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When the Dow Jones Trucking Index broke support back in July of 2011, the S&P 500 declined around 15% in the following 90 days at (1) in the chart below. The Trucking index has declined 7% in less than a month, after hitting its 2011 highs.
The one month decline has the Trucking index hitting an important rising support line. Could the S&P 500 keep on trucking to lower prices if the Trucking index breaks support? Will it be different this time if Trucking breaks down? I doubt a breakdown in the Trucking index would be beneficial for SPY!
Stay tuned and keep a close eye on this important Transportation index!