Dow Transports Testing All Time Highs
The Dow Jones Transportation Average made a new bull market closing high on Friday. Jack Schannep, who runs TheDowTheory.com newsletter, likes what he’s seeing, "The Transports often lead the market, notice they bottomed on June 10th before the Industrials and S&P on the 15th".
Amazing how things change in just a couple of weeks. In mid-June, the gloom and doomers were leading the headlines. Bearish Sentiment was making new highs and bulls were no where to be found. The Dow Jones Industrial Average is now just 1.8% away from making a new bull market high.
This is typical of bull markets: Wipe out the weak hands and go on to make new highs frustrating those who are not participating to the upside. What we want to do is keep an eye on the leaders that brought us here. $AMZN is a name that we have been talking about here for a while. It too is sitting at all time record highs. $AAPL, America's favorite stock is something that I am looking at closely. How it behaves at this critical level will tell us a lot about the strength of this market going forward. Take a look at the chart and you'll see that it's currently running into key resistance from a downtrend line that goes back to the February highs.
It's a short week, but an important one. Be smart and manage risk.
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