Trouble on the Transportation Index?

By: Marty Chenard | Tue, Apr 21, 2009
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In the past few days, I have done something I don't normally do. I have reported on the same thing for two days in a row, and will report on it again this morning ... about what is happening on the Transportation Index.

After reporting on it since Friday, most investors can appreciate the significance of the the Transportation Index hitting its October/April resistance on Friday, and pulling back yesterday. After all, the previous 3 touch points on this resistance all had pullbacks. That was a 1 day pullback yesterday, now we have to see if the Transports will retest the resistance or continue to fall.

In the past, each prior hit on the resistance line resulted in a pull back with a lower/low being made.The majority of analysts think that the economy has stopped falling ... a stop in falling could be that a bottom has been found, or only a pause in the falling.

The Transportation index will help give clarity as to which it is in the coming weeks. It if continues to fall over time, and makes a higher/low, then that would be a supportive case that the falling has stopped and that we are in a bottoming process. On the contrary, if it makes a lower/low, that would point to a situation where the economy has not hit a bottom. (The Transportation Index condition will be monitored and updated on our paid website updates.)

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
StockTiming.com
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Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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