Transports Index Leading the Way
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The Dow Jones Transportation Average Index has been a leader during the recent stock market rise. As of 11:00 AM CST this morning, the Dow Transports Index was up roughly 2.75% for the day and has negated the reversal that was placed on Monday.
Check out the chart below. Is the Transports Index foreshadowing that the S&P's reversal will be negated as well? If the Transports Index soon closes at a new all-time high, it's increasingly likely that the bear trap I proposed yesterday will be sprung (see Major Correction or Bear Trap). Keep an eye on this chart.
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